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Are US-Chinese relations thawing?
Written by Paul Antonopoulos, independent geopolitical analyst
Chinese Vice Premier Liu He held talks with US Treasury Secretary Janet Yellen on July 5 to discuss Washington’s trade tariffs on Chinese products and issues of global supply chain stability. According to Beijing’s press release, Liu stressed that the lifting of tariffs and sanctions, as well as the fair treatment of Chinese companies in the US, is a major concern for China. The US press release made no mention of changes to tariffs and instead mentioned the negative impact of the war in Ukraine for the global economy.
Both press releases did mention though that Liu and Yellen held discussions on the macroeconomic policies of the two countries, as well as global supply chain stability and global economic issues.
Given the fact that China’s chief trade negotiator spoke with Yellen, who has previously advocated for the removal of at least a significant portion of tariffs on Chinese products, it appears that tariffs are an important part of current discussions. This can only bring speculation that perhaps a thawing in the economic relations between the US and China is emerging, which is especially needed considering the economic troubles that the North American country is experiencing.
There is no consensus within the Biden administration on how to deal with China’s trade policy. Former President Donald Trump was belligerent and initiated a trade war. The trade war at its peak saw almost all Chinese exports to the US become subject to tariffs.
After that though, part of the tariffs were canceled and the so-called “Phase One” deal was signed, where it was expected China would increase the volume of goods purchased from the US by $200 billion over two years. However, tariffs on Chinese products totaling more than $300 billion remain in place.
At the beginning of his presidency, Biden did not make sudden moves in any direction and only talked about the comprehensive work of analyzing and revising his predecessor’s economic policies. In fact, none of the changes made by Trump have been amended by Biden.
The US is facing a new economic reality as the COVID-19 pandemic and the related economic crisis has forced authorities to resort to aggressive monetary stimulus measures. Ultra-low interest rates and quantitative easing has helped contribute to massive inflation in the US. In fact, American citizens have not experienced such price hikes in 40 years.
To help alleviate economic pressures, some US officials believe they have found a solution – lifting tariffs on Chinese goods in its entirety.
None-the-less, US National Security Adviser Jake Sullivan and US Trade Representative Katherine Tai opposed the tariff cuts. According to Tai, tariffs are a trump card in US hands, a lever to force Beijing to change its long-term trade policy. She said inflation is serious, but this is a short-term issue and the strategic task is to force China to comply with Washington’s demands. She believes that if tariffs were lifted, the US would weaken its negotiating position with China.
The reality is that China has not been greatly affected by the tariffs. Despite all the tariffs, China is not selling less goods to the US. In 2017, just before Trump kickstarted the trade war, the US trade deficit with China was $375 billion. In 2021, that figure was $396.5 billion.
Due to this reality, the main economic burden from the trade war actually falls on the shoulders of US consumers.
The Biden administration probably understands that the problem needs to be addressed as it no longer just a foreign policy issue, but a serious domestic one now. The Federal Reserve announced in June its largest interest rate hike in 28 years to try and control inflation, which hit a 40-year high in May. Some experts now believe that the US is in recession.
For this reason, it is clear that the US has decided to slowly move towards a gradual thaw in economic relations with China.
Although Washington seemingly wants a thaw in its relations with Beijing, differences, such as the causes of global instability in supply chains and economic processes, will make this a difficult task. However, investors still see this dialogue between the US and China as an undeniably positive signal, with stock exchanges reacting with enthusiasm, which could encourage Washington to end its trade war.
US started the economic war vs China, and they lost it. Now they are desperate so much they are ready to capitulate.
Thats incorrect. he main reasons are China send a lot of shit and govermenthal support by artificial lowered prices.
Its the same for into EU. We systematicly tax them now. It solves parts of the probpems well, but only parts.
And they can buy and own companies here by the normal stockmarket and by sales and buy.
We cant the opposit way. They protect everything and as minimum they demand 51% ownership.
Its not about capitulate. China also has very big internal problems. Sanctions hurt both very much. So both hope for sanctions in a lower level will help both.
Its very typical here, You never mention the rest of the world has big problems, which very much are made by themself too.
USA of course need some reforms and modernisations. I predict they will declne some but never collapse. The rest and even China will support moderate calibrations.
The US has got worked over by the China Russian tag team, aided immensely by US stupidity and obsession with making the cold war outcome irreversible. The US was on 18 in terms of having a beneficial position in the trading and rules based system it created. Then it decided to twist with a trade war with China, and finally went bust with taking on Russia over Ukraine. It really should have stuck and allowed a multipolar world, enjoying a big part of it and also having the most competitive advantage.
In order to lift the tariffs the democrats need to win the midterm elections, but now they are losing it. Hence I expect the US to double down on the tariff and accelerate their self destruction.
Its also a case of “divide and conquer ” as they got nowhere with Venezuela + Iran.
Both are highly incorrect. Both are going nowhere supported by themself. USA is just a helper according Iran.
Your moronic, failed existence is highly incorrect.
Injuri Gaggarin wrote this and not me. He was better when his servicedog laika still was alive. It had his never used brain.
US economy in recession—becoming worse as industry cannot absorb fuel inflation…bye bye nazi empire—-
Its more they deny. Changes to lower consumption often comes through if we are forced to
Bullying, arrogance, and politicising every aspect of our daily life were the habits of tyrannical USA deepstate that’s hard to break. There would always be a sinister scheme behind its actions, no one should trust the devil.
They are their own and no Santa Claus or UNICEF for free for You lazybumPs.
Biden and bojo are the living santa who are giving away and wasting billions worth of war machines to Kiev instead of poverty alleviation in US AND UK. Misappropriation of public funds.
Thats only partly correct. The school systems mainly are driven by the 50 states and private investers.
Biden was elected. You were right if Sanders was.
Thats no public funds. Its a budget decided by 330 mio people.
…Which would mean that China will now pivot back to “business as usual” with the American $atan and somehow turn on it’s Russian business associate?… Or so the Biden Administration is “hoping” and “praying” will happen!?…
Remember the plan https://www.zerohedge.com/markets/peter-hambro-bis-central-banks-are-rigging-gold-market-using-bullion-banks-paper-gold with thy neighbor that will restore value to currency and will expedite the demise of the “mutual problem” as opposed to delaying the “inevitable”!
I dont think so. They can find corners, which hurt both very much. Sometimes progress is like that :(
You mean like Ukraine and Taiwan?… But look where that has gotten $$ Soros & Company!?…
Perhaps Russia and China will collaborate and make Tel Aviv the lamb to slaughter to give London and Washington pause to “think about it”!?…
You don’t think at all: monkeys can’t think, especially lobotomized monkeys like you. Take a banana for your effort: 🍌
You expect too many changes. Bot China and USA has finaciel problems. By that they can agree in some moderations here and there, where both are winners.
Hambros makes sense. But they forget that if You manipulate fx gold or for that matter zink or butter, the effect will be changes in other sectors to equalize.
So its very much about where You are and can loose or take a lot of money. We see the reactions from the states. As soon at the interests goes up pga higher prices for food and fool its there:
The price for houses goes down. Suddenly the car salesman lower the price 20% and you can get a coup and almost feel as a thief.
I refuse Chinese charity noodles because I believe in our Constitution, and I believe America should fight to the last Ukrainian for freedom.
Thats right. There are reasons for sanctions.
if i get it correctly… as soon as russia turned off north stream and caspian oil pieplines to europe… australia has stopped delivering weapons to ukraine…
If so its not related at all. Australia only has disputes with China. Those are big and important.
Bend over Uncle Sam, papa Xi is right behind you
Geezus……why would China want to trade “finished goods” which requires China to purchase raw materials and then use energy (which pollutes their environment) in trade for printed “out of thin air” USD? The USD can only be used to buy “some” natural resources (many are being priced in Rubles now) or US T-Bills which will never be worth it’s printed value becasue the USA will eventually default on it’s debt. Why, please tell me why? Isn’t this just common sense?
Now is the time for China to push back the bullies and 0lay hardball with Washington…bring their economy to it’s knees
3 nations matter —China India Russia angloshere, EU dead. French economist Jacque Sapir demonstrates that Russian economy mismeasured by moron amerikan academics that claim it is #9—the pathetic quantitative anglo dinkmark Jens mind…Sapir shows that not merely by purchasing power but by commodities production, Russia is vastly larger than Germany and UK the US economy long ago driven into destitution—based upon burger flippers and Wall Street fakery—while all anglo and EU economies are in negative growth—Russia, China, India positive…..
this will be very upsetting to my nazi lgbt clients—Sawyer, jens midge williams. do you know how difficult it is to stabilize PTSD for lgbt snowflakes?
In the globalist battle against the bears the gentle Panda will win.
The Panda IS a bear. In Chinese it is called Cat Bear.
The whole article is chinese to me. It does not cover, whats really going on.
I has a faked american perspective written by a person, whcih dont like and understand them.
Its also ignored almost perfect, that China right now and for some time has been soft because of internal problems. By that they need some changes just as Biden & Co.