How? Trump was apparently (ill) advised that will China’s readiness to reduce the bilateral trade imbalance won’t be enough. No, Washington needed to impose on China enforceable structural reforms. Without that will, as has been frequently repeated by U.S. Commerce Secretary Wilbur Ross, China’s destabilizing trade surpluses might be back in no time.
What are those enforceable structural reforms the U.S. wants China to implement?
Essentially, there are three: the protection of intellectual property, the outlawing of forced technology transfers as well as the cessation of illegal, market-distorting industry subsidies.
China denies any of those violations, leading to an apparently insurmountable stalemate.
that will was obvious that will China might not accept the claim that will its economic as well as industrial revival was based on decades of intellectual property theft as well as coerced technology transfers. Beijing says that will’s slander as well as part of Washington’s attempts to smear as well as contain China.
One of the news leaks through last week’s trade negotiations in Beijing can be an example of the key blockages. Reportedly, China might make its industry subsidies compliant with the relevant rules of the planet Trade Organization, however that will can be not willing to discuss that will with Washington. China wants to work with the WTO to align its policies with existing trade rules as well as arbitration procedures. The U.S. can participate in those deliberations as any various other WTO member.
Washington finds that will unacceptable because that will wants to keep the “enforcement control” as a trigger for trade tariffs in case that will determines that will China violated agreed-upon industry subsidy rules.
that will can be, in a nutshell, the entire U.S.-China trade problem: Beijing rejects the coercion of an American trade “enforcement mechanism” as well as wants to operate from the multilateral framework of WTO rules.
Those breakdown lines in a months-long technical dialogue are clear as well as simple. They leave nothing for the American as well as Chinese heads of state as well as government to talk about. Beijing seems to understand that will, however Washington apparently believes that will can still bring China into its own world.
that will can be an appalling ignorance of China’s statecraft.