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wchao37 Post time: 2019-5-30 11:55
The trouble now is that the Chinese people are too modest, polite and non-confrontational when d ...
The original bone of contention was on the trade deficit. Even that is a questionable issue for four reasons:
one, most of the deficit was caused by US MNCs making in China their products for the world market, including the US, so it can't be fully ascribable to China; in fact, it has been said some 90% of China's exports to the US are made by those US multinationals in China;
two, the US conveniently omits to say it has a trade surplus with China in services. Last checked, this included the US markets for inbound China tourists and students. So, if the US harps on trade deficit on products, can China harp back on trade deficit in services?
three, the US won't sell to China what China wants to buy, yet wants China to reduce her trade surplus with the US by buying US products that have better and cheaper alternatives from other friendly countries with which she also trades; furthermore, if China doesn't buy more from the US besides the other matters, the US insists it can tariff China but China cannot tariff it back; and
four, the real issue is the US holding the entire trading world to ransom through its dollar as non-backed fiat money which in turn has propelled its people to spend more than make, thus reducing their savings, denuding their national current account, creating the trade deficit.
And because of continuous prosperity by just printing money, the situation makes it persuasive for the US to continue to do so, hence neglecting the modernization of its own rust-belt industries that would have added more values to create more marketable products.
Faced with this in-house reality, the US multinationals would naturally enough go to where people work harder, save more, and produce better goods at lower prices in record time because there is continuous improvement, and stability, scalability and resources are assured, and infrastructure and support services are modernized, besides no hang-overs that the US companies come from a different type of government.
In all the world, that place remains China.
To hide all that, the Trump administration took its easiest route. Make corny demands, act bully, blame China.
Yet one would have expected if a US president says Make America Great Again, he would first mean Let's Improve Ourselves, not let's kill Huawei and all the other China concerns which are coming up by dint of innovation and improvement.
He would mean let's see where we have gone wrong ourselves instead of blaming others for doing better than us.
He would know a deal can only be artistic and not artful that it has become today if it is done fairly on common ground - not start by trying to seize some moral high ground at the start of the talk by wearing the cloak of a party aggrieved for having a trade deficit. Which we have seen is not the real issue.
In other words, the talks had the wrong start from the very beginning.
So how can they end well at the very end?