What a Trade Deal With China Should Focus On
Washington Post Op-Ed
This is an excerpt from a Washington Post op-ed.
U.S.-China trade tensions will continue to simmer this week. Despite a potential olive branch from the administration around the future business operations of the Chinese telecommunications company ZTE, the United States is forging ahead with plans to impose tariff increases on certain imports from China. Meanwhile, Liu He, China’s lead economic negotiator, is visiting Washington this week to continue discussions with his U.S. counterparts.
Will we end up in a retaliation cycle with China, or is a negotiated solution still possible? The recent U.S. proposal submitted to China underscores the scope and seriousness of the trade, investment and technology issues on the table. Unfortunately, it does not signal to China where U.S. priorities lie, resembling more of a wish list than a serious negotiating proposal.
Reports suggest that both sides may be focusing their talks on bilateral deficit reduction by identifying sectors and products where China can purchase more from the United States. If this is indeed the major outcome of the talks, it would be a serious lost opportunity. After taking the United States to the brink of a trade war, the Trump administration should seek a long-term solution to our differences with China, not a short-term win.