U.S. Commerce Secretary Gina M. Raimondo held an introductory call today with the Minister of Commerce of the People’s Republic of China, Wang Wentao. Secretary Raimondo discussed the Biden-Harris Administration’s focus on economic policies benefiting American workers and expressed U.S. concerns, including China’s unfair and market-distorting industrial policies, the need to level the playing field for U.S. companies in China, and the importance of protecting U.S. technology from unauthorized users. Secretary Raimondo noted that she looks forward to future discussions with Minister Wang on these issues.
President Trump said on Sunday the U.S. tariffs imposed on $200 billion of Chinese goods will increase to 25 percent on Friday, attributing the payments on those products to the “great economic results.”
The U.S. already imposes a 10 percent tariff on $200 billion of goods and a 25 percent tariff on $50 billion of tech products. Trump also threatened to slap an additional 25 percent tariff on $325 billion of goods.
White House officials have stressed that both sides are eager to wrap up talks; last week, Treasury Secretary Steven Mnuchin told FOX Business that although they still had “more work to do,” enforcement mechanisms were “close to done.”
“If we get to a completed agreement it will have real enforcement provisions,” he said at the time. Trump, however, warned that although talks were continuing, they were progressing too slowly as Beijing tries to renegotiate.
“The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” Trump wrote.
Politico reported on Wednesday that the two countries are close to a deal, which could come as soon as the end of this week.
Trump has made a priority of shaking up American trade policy.
As a candidate for the presidency, Trump raged repeatedly about alleged Chinese perfidy — so much so that a video mashup of him spitting out the word “China” went viral and collected more than 15 million views on Youtube.com.
Trump charged that previous administrations, gullible and weak, had let China get away with abusive trade practices, accepting empty promises from Beijing and allowing the U.S.-China economic relationship to grow ever more lopsided. As evidence, he pointed to America’s vast U.S. trade deficit with China — $379 billion last year, by far the biggest with any country in the world.
Once he took office, Trump’s relationship with his Chinese counterpart, Xi Jinping, seemed to get off to a good start. The two men shared chocolate cake and amiable conversation at Trump’s resort in Mar-a-Lago, Florida, in April 2017. A few weeks later, China agreed to open its market U.S. beef, cooked chicken, and natural gas in what Commerce Secretary Wilbur Ross called a “herculean accomplishment.”
The romance faded. In March 2018, the Office of the U.S. Trade Representative issued a report accusing China of using predatory tactics to strengthen its tech companies.
Last July, the Trump administration gradually began slapping import taxes on Chinese goods to pressure Beijing into changing its policies. It now has imposed 10% tariffs on $200 billion in Chinese imports and 25% tariffs on another $50 billion. The Chinese have retaliated by targeting $110 billion in U.S. imports.
The fight between the world’s two biggest economies is raising worries about global economic growth. The International Monetary Fund, the World Bank, and others have downgraded their forecasts for the world economy, saying the U.S.-China standoff is reducing world trade and creating uncertainty for companies trying to decide where to buy supplies, build factories, and make investments.
Trump has portrayed his tariffs as a moneymaker for the United States and a benefit to the U.S. economy.
But a March study by economists from the Federal Reserve Bank of New York, Columbia University, and Princeton University found that the burden of Trump’s tariffs — including taxes on steel, aluminum, solar panels, and Chinese imports — falls entirely on U.S. consumers and businesses who buy imported products. By the end of last year, the study found, they were paying $3 billion a month in higher taxes and absorbing $1.4 billion a month in lost efficiency.
Nonetheless, the overall U.S. economy has remained healthy. On Friday, the government reported that the U.S. unemployment rate had fallen to the lowest level in half a century.
President Donald J. Trump spoke today with President Xi Jinping of China, on the occasion of the closing of China’s Party Congress, to welcome continued cooperation of the two countries in the years ahead. President Trump told President Xi he looks forward to visiting China in early November, and to advancing joint efforts to denuclearize North Korea.
MBDA National Director David Hinson, along with a 27-member delegation of U.S. corporate executives and minority-owned businesses, recently completed a China Business Opportunity Trade Mission to Beijing, Tianjin and Shanghai. The goal of the trade mission was to meet with potential corporate, government and university partners and attend the Minority Supplier Development (MSD) China Summit and Business Opportunity Fair.
The trip was organized by the National Minority Supplier Diversity Council (NMSDC) to foster business relations between American corporate and minority-owned businesses, corporate members of MSD China, and Chinese ethnic minority businesses that are not a part of the Han Chinese majority in China and Taiwan.
Director Hinson was a keynote speaker at the MSD China Summit and Business Opportunity Fair, held Sept. 1-2 at the Tasly International Conference Center in Tianjin. In his remarks, he encouraged participants to join in helping minority suppliers gain more business opportunities within the global economy.
The annual event brought together 80 corporate executives, minority supplier development professionals and purchasing executives, along with a host of Chinese and U.S. government officials, and about 100 minority business owners from China and the U.S. The Summit also included several delegations from ethnic minority regions within China.
“Among those core values that citizens of the United States and China share is the belief that we owe our success to the ingenuity, intellect and creativity of our people,” Hinson said.
Over the course of the two days, the Summit provided a forum for an exchange of ideas and included workshops onBusiness Opportunities with Multinational Corporations; Starting a Business in China: Practical Advice from Experts; How Traditional Chinese Medicine Goes International; and The Development of Chinese Ethnic Minorities and Chinese Minority Business Enterprises.
MSD China is the country’s first, national non-profit membership organization dedicated to enhancing the development of the 56 non-majority Chinese ethnic groups in business by connecting minority suppliers to corporations for procurement opportunities on a mutually beneficial basis.
The U.S. delegation attending the event included representatives from Dell, IBM, United Technologies Corporation, The Boeing Company, Hewlett-Packard Company, Marriott International, Inc., Merck, PepsiCo, and several minority businesses and leaders from the NMSDC. The China trade mission ran from Aug. 29 through Sept. 5.
Director Hinson’s time in China also included meetings in Beijing to discuss MBDA’s globalization program and objectives, investment opportunities in China, and current merger and acquisition trends. In addition, he met with the School of Continuing Education at Tsinghua University for an overview of its globalization program and to discuss minority business enterprise matching and the possibility of a joint program between Tsinghua and U.S. universities.
The Business Opportunity Trade Mission is a part of MBDA’s ongoing efforts to create access for minority businesses and broaden domestic and global opportunities through strategic partnerships.
President Donald J. Trump spoke today with President Xi Jinping of China to discuss North Korea’s September 3 test of a powerful nuclear device. The two leaders condemned North Korea’s latest provocative and destabilizing action and noted North Korea’s current path is dangerous to the world and not in its own interest. President Trump and President Xi committed to strengthen coordination and take further action with the goal of achieving the denuclearization of the Korean Peninsula.