China and the United States are notorious competitors on the global stage.
One of the things that make America exceptionally better than China is the fact that we have an elected government. Our government is legitimate, and there is a separation of legislative, judicial, and executive powers.
China, on the other hand, is ruled solely by the Communist Party. There is no separation of powers. There are no checks and balances, or an independent press.
In terms of trade, however, it’s America that’s in the red. Last month the US trade deficit with China hit a record high, and the President is concerned that these numbers signal the decline of American manufacturing and a troubling reliance on foreign goods.
But where his predecessors chose to kick the can down the road, Trump has taken action.
From The Wall Street Journal:
The Trump administration is asking Beijing for a plan to cut the annual U.S. trade deficit with China by $100 billion, according to people familiar with the matter…
China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States. Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with. We must act soon!
— Donald J. Trump (@realDonaldTrump) March 7, 2018
Trump administration officials made the request to Liu He, the main architect of China’s economic policy, last week when he was in Washington. Mr. Liu said in his Washington meetings that narrowing the vast bilateral trade deficit was in China’s interest as China seeks to shift away from an export-led growth model…
Mr. Liu described his exchanges with senior U.S. officials including Mr. Cohn, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer as “candid and constructive,” according to people with knowledge of the event.
“Both sides said there won’t be a trade war,” Mr. Liu told the group of some 60 lawmakers.
The pundits are predictably melting down over this tweet, convinced that President Trump is trying to spark an all-out trade war. Trump’s recent implementation of tariffs on steel and the resignation of his economic policy advisor have helped to fuel these concerns.
But President Trump and China’s leader Xi Jinping appear to have a warm relationship, and both seem optimistic about what the future holds.
Too bad optimism doesn’t sell headlines, or else the liberal media might be forced to entertain the idea that Trump may have good business sense and his recent moves all serve a purpose.
For example, when President Trump announced a tariff on solar panels in January, many thought that this would lead to catastrophic consequences in the marketplace.
What wound up happening actually helped the marketplace by creating jobs. After the solar panel tariff was implemented, China agreed to build a solar panel factory.
Trump is playing 4D chess with China, and thus far his gambles have paid off.
Source: The Wall Street Journal