China, Japan protest US probe into need for auto tariffs

China's first current account deficit since 2001 won't change the world

China's first current account deficit since 2001 won't change the world

Negotiations in Washington last week ended with China agreeing to buy more imports from the USA, averting for now the imposition of US tariffs on billions of dollars of Chinese products.

Certainly, the stock markets surged on the news on what appeared to be vindication of the Trump administration's hard-line approach to realign the stars of the US-China trade relationship.

"Our Trade Deal with China is moving along nicely, but in the end we will probably have to use a different structure in that this will be too hard to get done and to verify results after completion", Trump said on Twitter on Wednesday.

The White House disputes the idea that Trump has gone soft on China and is certain to bill the trade deal, when it is confirmed, as a significant step, however it is portrayed by experts.

The Trump administration has launched a national security investigation into auto and truck imports that could lead to new USA tariffs similar to those imposed on imported steel and aluminum in March. Kudlow said these practices must be stopped and that China was to blame for the actions Trump has been driven to take with regard to China.

Trump has also found himself under attack for retreating from penalties his administration announced against a large Chinese telecommunications company, ZTE, for violating U.S. sanctions against Iran and North Korea.

"The president asked me to look into it, and I am doing that", Trump said.

A Trump administration official said before the announcement that the expected move was aimed partly at pressuring Canada and Mexico to make concessions in talks to update the NAFTA that have languished in part over auto provisions, as well as pressuring Japan and the European Union, which also export large numbers of vehicles to the United States. The letter, signed by Senate majority whip John Cornyn and Florida Republican Marco Rubio, along with leading Democrats Charles Schumer and Sherrod Brown, also attacked any deal on ZTE.

A spokesperson for BMW said the company would reappraise its pricing system and adjust prices for China market. He added that China has already essentially contracted out around two or three months' worth of buying, primarily from South America. I dont like to talk about deals until theyre done. But this has been vigorously opposed by the military and national security establishment. It wasnt done by previous administrations, it was done by us. In auto parts exports to the U.S., China was ranked second a year ago.

To be sure, the USA has long pursued a unilateralist foreign policy, exemplified by George W. Bush's 2003 invasion of Iraq and Barack Obama's 2011 overthrow of Muammar el-Qaddafi's regime in Libya. Schumer criticised the agreement for failing to deal with the issue of intellectual property rights. -China trade negotiation is "going to be a lengthy process". "They have avoided tariffs & got a #ZTE deal without giving up anything meaningful".

Observers argue that Beijing had won the Sino-American trade war before it had even begun, referring to the US-China joint statement released by the White House on May 19, 2018.

On the other hand, the question of how much time it will take for China and the U.S. to reduce the trade deficit remains elusive. Treasury Secretary Steven Mnuchin said over the weekend that the administration's plan to impose tariffs on Chinese goods has been suspended. DiMicco was an adviser to Trump's campaign and presidential transition who now sits on an advisory committee for US Trade Representative Robert Lighthizer. "Real structural change is necessary [there]", he said.

A soybean trade expert said it is not uncommon for sales to China to be identified as being to "unknown destinations". "On China, Barriers and Tariffs to come down for first time".

Earlier Thursday, Trump had blamed the U.S. neighbors to the north and south for being "difficult" in talks to renegotiate the pact.

Trends in US-China relations that seem to favor Beijing have been in evidence in recent days. No doubt there will be many twists and turns ahead.

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