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How about a trade deal while I buzz you with my warships? US-China trade talks intensify

Mar 28, 2019

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • The United States and China are in the middle of high-level trade negotiations as the 2 countries look to complete the so-far-elusive trade deal
  • In recent days the less-senior members of the negotiating team arrived in China. 

 

  • Just as they were stepping off the plane, they looked over their (figurative) shoulders and saw the American flag just off the coast of China....

 

  • The US Navy destroyer Curtis Wilbur and the US Coast Guard cutter Bertholf were just then sailing through the Taiwan Straight
  • The Pentagon called a routine transit.  

 

  • It's doubtful China agreed.

 

  • This is the third month in a row the US Navy has sent warships through the Taiwan straight as it steps up such operations. 
  • Freedon of navigation operations are increasing in frequency in the South China Sea as well, where China has built out reefs into small islands that it now claims are its territory, along with vast swaths of the South China Sea.

 

  • Vehemently, the US disagrees.

 

  • US Secretary Steve Mnuchin and Trade Rep Robert Lighthizer both arrived and started negotions today that are to continue on Friday in Beijing
  • A Chinese senior delegation will travel to Washington, DC next week to try to finalize a deal, though there are no guarantees
  • A deal is seeking to include greater US exports to China, greater access to the Chinese markets for US companies and protection of intellectual property for foreign companies
  • Of particular interest has been access to China fast growing cloud-computing market, which US firms can only access via JVs with local Chinese companies
  • Today China offered concessions on access to its cloud-computing market, in an effort to continue making progress on a trade deal
  • White House Economic Adviser Larry Kudlow said today, "If it takes a few more weeks, or if it takes months, so be it.  We need to get a great deal..."

 

 

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