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Trade confrontation between the United States and China in the black face strategy

DATE: Jun 7th, 2018
In a statement issued in May 29th (2018), the White House stated that the final list of China’s “301 tariff” will be published before the middle of this year, and the United States will announce the investment and export controls and restrictions on Chinese individuals and entities by the end of June, with the aim of important scientific and technological industries.

The president of the United States Trump repeatedly stressed that he and President Xi Jinping China good personal relations, more at the continental United States sanctions for violation of the ban on communications equipment manufacturers ZTE to intercede, also admitted will consider whether to sell Xi Jinping in the face “ZTE case”, which is caused by the two world a call.

In addition, Liu He, vice premier of the State Council, visited the United States and talked with American officials. He subsequently accepted the visit of Chinese official media to claim that “the United States and China have reached consensus, do not fight trade wars, and cease to impose tariffs on each other.”

Although Steven Mnuchin, the American negotiator and finance minister, later accepted American media visits with Liu He, the White House statement today showed that the administration of trade policy, plus the opinion of Congress, would not allow China to take the green light of the “direct White House” route. Although China’s trade war has been suspended, it has not been terminated. The practice of levying tariffs is about to be implemented.

The White House lists four key points, emphasizing the “unfair trade policy” of the Sichuan general assembly against China, with the exception of “China made 2025”, and a number of China’s unfair trade as well as the cause of the United States.

The White House pointed out that according to the 301 clause of the trade law, the United States launched a survey of China for 25% tariffs on Chinese commodity courses worth $50 billion and contains important industrial technology. The White House also mentioned that the final product list, including the products related to the “China made 2025” program, will be in June. It was announced 15 days ago.

The United States will also implement specific investment restrictions and strengthen export control for the Chinese individuals and entities to acquire important industrial technologies, and the relevant measures will be announced by June 30th.

The White House also points out that the U. S. trade representative’s trade discrimination against China is suing the World Trade Organization (WTO) and negotiating with China through the WTO dispute settlement mechanism, and it will continue.

The White House accusations about China revolve around “injustice”, including unfair trade in China for many years. It has been a cheap, unfair and reciprocal trade in the United States. Especially, industrial policy made by “China made 2025” has hurt American and global enterprises; China’s aggressive way of trying to get American Enterprise technology is broken. Bad creativity and creativity of the United States, the United States employment injury; against unfair trade Chinese as Donald Trump will come forward; Trump will protect American innovation and creativity.

The interpretation of internal Trump government in the trade of China approach highlights the hawks and doves of the contest, but the key is still in spite of the president of the United States have decision-making power strong, the American system is different from Chinese “one day”.

Since, Trump ZTE intercede rare bipartisan consistent criticism, show the Democratic balance (Check and Balance) yuan, by promoting legislation, let Trump unable to respect the president’s easy for ZTE green light.

The administrative departments of the duties, in charge of trade policy of the United States trade representative Trump according to the memorandum signed by the relevant public launched “301” to levy tariff mechanism, obviously, with Trump friendship, call process is still unable to stop the administrative department to start, but the administrative department intends to limit the specific investment resorted to the And strengthening export control has also been supported by legislative departments.

Bowen (Bown), a senior fellow at the Peterson Institute for International Economics (PIIE), points out that this shows that trade wars in the United States and China will “no longer be shelved”, but the focus will be on what impact China’s counteraction will have on American agricultural and energy exports.

Bowen pointed out that if the Beijing impression is Trump has set aside 301 “tariffs”, the White House statement will make China so-called “independent” buy American products and expand the import complex.