Trump and China's Trade Deal

NBCNews.com

China Might Offer $200 Billion Trade Deal To Trump

China might offer to purchase $200 billion worth of products from the United States following Trump’s sanctions. However, if Trump were to agree to the trade deal – despite advice from economists – it would be effective in his dealings with Kim Jung-un as well as the trade deficit.

China Might Offer $200 Billion Trade Deal To Trump

Trump has talked smack about China ever since 2016 when he first began running for the presidency. Some might remember when an edited montage of all the different times Trump said, “China,” throughout his campaign trail, quickly became a viral video. Either way, he’s been concerned about trade deals with them for a long time.

On a number of occasions, Trump has stated China has been treating them unfairly for years. And It turns out there is some truth to that.

As a result of his sanctions against China, the country is now proposing to buy $200 billion worth of goods. And If the deal goes through, it would supposedly end the “trade war.”

This all comes at a time when Trump is scheduled to talk with Kim Jong-un, and the proposed trade deal would supposedly make things easier ahead of the talk.

However, economists are warning the bargain is simply unrealistic. The American economy isn’t able to sell $200 billion worth of goods to China alone in one year.

Not only that, if Trump goes ahead with the trade deal, it means he has abandoned his “tough-on-China” policies which arguably played a role in his win of the election.

China Has Been Stealing Technology For Years

Not a lot of people are aware that China has been illegally stealing technology from the United States for years. Additionally, they’ve pressured American organizations to hand over sophisticated technology under unfair circumstances.

Fake Apple Store - China Trade Deal
TheHuffingtonPost.com

If Trump were to say “yes,” to the new trade deal, it would be a great way to reduce the deficit. But economists believe the deal is a bad one, simply because the amount offered is unrealistic and over the top.

China’s bargain involves buying a lot more goods, including things like soybeans, semiconductors, and natural gas. In exchange, they want the United States to drop their sanctions, including the ones against the telecommunications company, ZTE.

ZTE almost went bankrupt when Trump’s sanctions led to their loss of American suppliers. Moreover, the sanctions in place stop American companies from selling technology to the Chinese, which they then, steal, and re-create in their own country, clearly disobeying copyright laws.

And copyright laws or not, it’s just straight-up shady.

It Appears That Trump Might Actually Be Doing Some Good

What’s interesting is that, despite claims by the media, Trump’s sanctions against China have actually done some good for American interests. For one, it’s unacceptable to allow China to steal technology from American companies.

One of the men working on Trump’s administration wrote a book called, “Death By China,” an investigatory report that deals with the topic directly. And the author, Peter Navarro, led the investigation into China.

Allowing the Chinese government to steal, then turning around and acting like everything is all good, is ridiculous.

That’s like allowing someone to come into your house, piss on your floor, and then afterward you have to pretend like they didn’t just do that.

Moreover, Chad Brown, an economist specializing in International Economics, said, “the short answer is these are unrealistic numbers,” when referring to the $200 billion trade deal.

According to him, if China stopped buying key products from other countries including Airbus airplanes from the EU, or soybeans from Brazil, and bought all of those products from the United States instead, it wouldn’t amount to a sum close to the $200 billion.

It’s Simply A Matter Of Respect

Chinese officials want access to military technology made by the Americans, and Trump is trying to back away from that. And for good reason.

It’s simply a matter of respect. Would you be friends with someone who you know has been stealing some of your belongings for years?

Additionally, administration “experts” have stated China has failed to meet up to the expectations of prior trade deals in the past. It’s part of their political strategy.

Protectionism is Still Not Good

Nevertheless, it looks like Trump’s grandstanding and protectionist policies have managed to actually do something positive. However, protectionism, especially in a global economy like the one in modern day, is not a smart one.

In a world everyone is becoming increasingly connected day-by-day, the sharing of information has become probably the cornerstone of the new economy. People have called it the “information-economy,” rather than the one in the past, which focused on industrialization and manufacturing.

Nowadays, it’s all about technology, knowledge, information, and putting specialized knowledge to use. Information is not only the product, it’s the currency.

Economic policies should probably reflect the shift toward an information-based technology, one revolving around sharing.

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