KEY POINTS :
1.Beijing can not deposit money and technology by tapping the open markets of the US indefinitely.
2.A quick solution to the American-China trade dispute requires a rebalancing on bilateral trade accounts – a sharp increase in Chinese sales for Chinese and a rapid increase in Chinese purchases of American goods and services. China’s regulatory change is a different matter.
3.Financial markets should be stopped about the U.S.-China trade problem – this is a peripheral issue and purely business phenomenon. Only the Fed can crash the wall.
When Beijing resides with the United States, the alleged search of “win-win cooperation” and its harmonious “great power relationship” disappear.
With all of China’s $ 9.4 billion trade surplus on the US trade since January 201, after getting help from the current administration in Washington, Washington, it is all clear.
It can also be forgiven for taking an American government as an inflammatory provocation, to prevent the rapid development of its foreign debt, and to remain in the destructive import-competition manufacturing industries of America Promises to protect employment.
Like all excesses, it can also dominate the Chinese badly. And it is not clear whether China’s economic and political interests are served as Beijing, which will deliberately push American-China trade relations and increasing unbalanced imbalances.
No, China should know that at any given time, the abusive party wants out – sometimes violent.
China is playing a dangerous game
Therefore, an act of the enlightened statesman wants to avoid such conflicts, especially if its guiding principles in international relations are “win-win” and great power is compatible with “a community of shared future for mankind”.
None can be seen in China’s relations with the current US administration. During 2017, China’s trade surplus on American trades increased 8.1 percent. Last year, China’s trade surplus increased by 12 percent, which was 17.4 percent higher than the US $ 594 billion, while exports in the U.S. China’s purchasing power dropped 7.4 percent to $ 120.3 billion.
This is not just a matter of provocation; This is a victorious disobedience.
Despite all this, President Donald Trump had eagerly announced a few weeks earlier that he could host a signing ceremony on a trade agreement with Chinese President Xi Jinping in Florida at the end of this month.
It looks like an extraordinary – perhaps even silly – the generosity of a person whose president is on the line as a result of losing an unfair business case against China. Legends of Trump dissatisfaction, and whose livelihoods have been destroyed by trade with China, it is certain to remind them – in the ballot box – that allow Beijing to get away from the record-breaking amount of net income on its American trades Is inexcusable Piece of financial mismanagement.
If this is not part of the hidden agenda of China, then some measures can be taken to avoid Beijing’s big bilateral crisis, which can already harm dangerously harmful American-China relations.
Beijing can do much better
First of all, contact with the urgency on this issue. To rapidly diversify Chinese exports away from US markets, and take firm steps in the purchase of US goods and services and immediately stop and mark the trend of China’s growing bilateral trade surplus.
Secondly, with such honest display of good faith, Beijing should adopt regulatory changes that offer internationally comparable guarantees for the protection of intellectual property and the prohibition of forced technology transfer for Chinese joint-venture partners. Clearly the big reason for non-tariff barriers to the trade of China should also be destroyed.
China-based American and International Chambers of Commerce and the World Trade Organization’s alert members will work as observers that China is implementing and implementing its business rules properly.
Third, China may benefit from an increased international monetary fund monitoring, which is technically called Article IV consultation. This will ensure that China’s monetary, fiscal and structural economic policies – both domestic and foreign trade – are in compliance with international regulations and best practice policies.
Apart from this, China can also wish to join the comprehensive biennial economic examinations with the Economic Cooperation and Development Organization to obtain an independent expert assessment of the entire spectrum of its economic policies. This OECD does well, and it can be a very useful source of fair advice. Such tests will save China from its widely publicized amateur attack on economic management.
Fourth, the IMF consultation and the OECD’s bipartisan examinations will provide expert opinion about China’s monetary policies and its managed floating exchange rate. It will preserve the monetary sovereignty of China and give very important advice about the country’s highly sensitive capital account transactions.
How China has expanded those steps within the ongoing business negotiations with the United States, it is a matter of its own decision.
But one thing must be clear: the American trades have ended while dragging on the continuing process to accumulate China’s huge surplus. Washington has finally come to the point where he can no longer tolerate any inconclusive things, while China laughs in every way.
To ensure this, however, eliminating the trade surplus issue will not lead to fundamental improvement in US-China relations. It is impossible unless the US security expert considers China as a “strategic competitor” and “revisionist force”, which is set to challenge the American world system.
However, it can be expected that a meaningful progress on bilateral trade problems can open more space to constructively construct constructive security issues, however, again, there is no guarantee of such results. China’s elections, sea borders, Korean problems and Beijing’s belt and road transactions will remain the issues of peace for America’s war and peace-loving future.
The financial community should stop the fret about the US-China war on trade issues. This is a peripheral and purely business event.
The US Federal Reserve’s policy is the only thing that can damage Wall Street, and the rest of the world, accusing a prosperous bear market.
At the moment, with relatively well-behaved American inflation, the Fed has no reason to incite a continuous decline in American and global asset prices.
China will do well to achieve its unbalanced trade imbalance with the US – quickly and completely.