In APEC Speech, Trump Slams China, WTO And TPP For Holding Back His "Indo-Pacific Dream"

Tyler Durden's picture

Trump may have sensed that he appeared too conciliatory towards President Xi and China during his visit to Beijing, and so shortly after doubling down on his parting message to China by tweeting that "I don’t blame China, I blame the incompetence of past Admins for allowing China to take advantage of the U.S. on trade leading up to a point where the U.S. is losing $100's of billions. How can you blame China for taking advantage of people that had no clue? I would've done same!"...

... which prompted countless snarky comments from the blue-check gallery, Trump arrived in Vietnam where he immediately spoke at the APEC (Asia Pacific Economic Cooperation) summit; here the US president went back to his  "roots" of harshly criticizing China, its state-owned enterprises, all manner of anti-competitive practices by the Middle Kingdom, the WTO and the TPP. Trump also added that the United States will no longer tolerate the abuses and, while previous administrations have done nothing about them, he will.

In summary, Trump:

  • Slammed China for the unacceptable trade deficit, lack of market access, government-run industrial planning, currency manipulation and other abuses for gaining economic advantage;
  • Slammed China’s subsidised state-owned enterprises which carry out the government’s predatory industrial policy and put private competitors out of business;
  • Slammed China for forcing companies to surrender technology to the state and forcing them into joint ventures to gain market access;
  • Slammed the WTO for unfairly treating the US and allowing countries, notably China, to break the rules;
  • Slammed the TPP (without naming it directly) which would tie America’s hands, remove its sovereignty and prevent the enforcement of WTO rules;
  • Will make bilateral trade agreements with Indo-Pacific nations; and
  • Stated that economic security is national security.

While Trump’s speech was greeted with a standing ovation, we suspect it was less well received by his new “friends” in Beijing.

Here is the key part of Trump’s speech regarding trade.

We seek robust trade relationships rooted in principles of fairness and reciprocity. When the US enters into trade relationships, from now on we will expect our partners will faithfully follow the rules just like we do. We expect that markets will be open to an equal degree on both sides and private industry, not government planners, will direct investment. It’s been unfair for too long and in too many places. The US systematically opened our economy with few conditions. We lowered or ended tariffs, reduced trade barriers and allowed foreign goods to flow freely into our country. But while we lowered market barriers, other countries didn’t open their markets to us. Countries were embraced by the WTO even if they didn’t abide by its stated principles. Simply put, we have not been treated fairly by the WTO. Organisations like the WTO can only function properly when all countries follow the rules and respect the sovereign rights of every member. We cannot achieve open markets if we do not ensure fair market access. In the end, unfair trade undermines us all.

 

The US promoted private enterprise, innovation and industry. Other countries use government-run industrial planning and state-owned enterprises. We adhere to WTO in protecting intellectual property and ensuring fair and equal market access. They engaged in product dumping, subsidised goods, currency manipulation and predatory industrial policies. They ignored the rules to gain advantages over those who followed the rules, causing enormous distortions in commerce and threatening the foundations of international trade itself. Such practices, along with our collective failure to respond to them, hurt many people in our country and also in other countries. Jobs, factories and industries were stripped out of the United States and out of many countries in addition.

 

We can no longer tolerate the abuses and we will not tolerate them. Despite years of broken promises, we were told someday soon everyone will behave fairly and responsibly. People throughout America and the Indo-Pacific region have waited for that day to come, but it never has and that is why I am here today. To speak frankly about the challenges and work towards a brighter future for all of us. I recently had an excellent trip to China where I spoke openly and directly to President Xi about China’s unfair trade practices and the enormous trade deficits they have produced with the United States. I expressed our strong desire to work with China to achieve a trading relationship that is conducted on a truly fair and equal basis. The current trade imbalance is not acceptable. I do not blame China or any other country for taking advantage of the United States on trade. If their representatives are able to get away with it, they are just doing their jobs. I wish previous administrations in my country saw what was happening and did something about it. They did not, but I will.

 

From this day forward, will compete on a fair and equal basis. We are not going to let the United States be taken advantage of any more. I am always going to put America first, the same way I expect all of you in this room to put your countries first. The US is prepared to work with each of the leaders in this room today to achieve mutually beneficial commerce that is in the interest of both your countries and mine. That is the message I am here to deliver. I will make bilateral agreements with any Indo-Pacific nation that wants to be our partner and will abide by the principles of free and reciprocal trade. What we will no longer do is enter into large agreements that will tie our hands, surrender our sovereignty and make meaningful enforcement practically impossible. Instead we will deal on the basis of mutual respect and mutual benefit. We will respect your independence and sovereignty, we want you to strong prosperous and self-reliant, rooted in your history and branching out towards the future. That is how we will grow together, in partnerships of real and lasting value. 

 

But for this, and I call it the Indo-Pacific dream, if it’s going to be realised, we must ensure that all play by the rules, which they do not right now. Those who do will be our closest partners, those who do not can be certain that the United States will no longer turn a blind eye to violations, cheating or economic aggression. Those days are over. We will no longer tolerate the audacious theft of intellectual property. We will confront the destructive practices of forcing businesses to surrender their technology to the state and forcing them into joint ventures in exchange for market access. We will address the massive subsiding of industries through colossal state-owned enterprises that put private competitors out of businesses.  We will not remain silent as American companies are targeted by state-affiliated actors for economic gain, whether through cyber-attack, corporate espionage or other anti-competitive practice…The US has been reminded time and time again in recent years that economic security is not related to national security. Economic security is national security. It is vital to our national security.

He concluded with…

“God bless the Pacific region, God bless the United States of America.

… which the locals seemed to particularly enjoy.

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ludwigvmises's picture

If we want to compete with China or Europe or Japan or Korea we'd need a competitive industry. Which we don't have. Trump talks a lot but he can't change the fact that our workers and engineers are simply less educated and less motivated than our global competitors. US student scores in mathematics and science (PISA) lag badly behind Asian countries. You can't out-compete your economic opponents with a mediocre workforce.

Grumbleduke's picture

well, the US could make NASA a public company. That'll push some industries for sure.

Why not do it? Of course the fakery will have to end.

Life of Illusion's picture

 

 

The FED ... a state MBS ownership..with no plans to sell down assets?????

 

Combined with GSE’s ownership, USA state owns majority real estate MBS assets

 

Why not sell assets and let private industry own the real estate market again..USA?

Xena fobe's picture

But it is in private hands, banks, REITs, foreign mega corps, hedge funds. The problem is concentration of ownership. Hence the explosion of the Yellenvilles of homeless campers.

truthalwayswinsout's picture

Taking NASA Public could raise up to $800 Billion over the next 15 years. It would create 15 million jobs, form hundreds of new companies, pay off the national debt and for  environmentalists, it will save the environment.

It is the simplest thing in the world to do and costs the government, which has no spare cash nothing.

cossack55's picture

Bigger adding machines will do the trick

ne-tiger's picture

One thing I'm really pissed is WTF our fed tax is used for? In China for example, there's no property tax and the government still provides free basic education, low priced college and reasonable medical coverage.

 

But here in our dear US of A, you need heavy local propety tax to cover k-12. Then for college and health care, you are basically fucked with out of reach price. Where's my fed. tax go?

 

Guess war is good, right? Fuck all the warmongers here!

wafm's picture

well you guys have 7 or 800 billion earmarked yearly for a useless military, that kinda money would make a big difference if it was used wisely instead of wasted on Lokheed Martin and their mafia colleagues...

Xena fobe's picture

Our tax dollars are put into a financial rube goldberg contraption and come out as subsidies to the 1%.

Tarjan's picture

There is a property tax in China, but it is a once off that is paid when you purchase the house.

 ~ 

rtalcott's picture

NASA peaked around Apollo...right now it's another government run (poorly managed) organization with way too much bad management...if the IP is as poorly written up and developed as what is coming out of the national labs it's mostly worthles...if like the national labs patents are mostly US only or provisional then the IP is not worth much either...

Obsidian Samctum's picture

Asians can score on tests, but they lack creativity and ingenuity. Not saying they are not capable of it they’re not in the right environment to nurture creativity like the children of the west.

DingleBarryObummer's picture

it's time to turn of dancing with the stars and crack open a couple history/engineering/military/art//craftsmanship books

 

ne-tiger's picture

On the other hand, here in US of A schools, only school atheletes are popular. Kids dont give shit about academic/learning.

wafm's picture

wow think again pal, you've got it totally wrong. Which is why China is where it is and you are where you was. 

Never underestimate the other. 

Obsidian Samctum's picture

They are just mimicing the west. Nothing to it.

Mustafa Kemal's picture

"Asians can score on tests, but they lack creativity and ingenuity."

Nonsense.

In the last decade, the chinese have gone from almost nothing to almost dominating many of the mathematical journal publications. The papers I have read seemed quite creative and sometimes ingenious. But the point being a few decades ago the authors lists in the journals was like Jones, MacKay, Smith ... and now its Zhang, Liu, Wang and Wat de Fuk  

You dont fix that with muscle and bravado Donald, you fix it with investment.

Hey Donald, why dont we just take some of that MIC bill and use it on Americans? We would even have enough left over to spread around the globe. Could actually rebuild the ME. They deserve it, so do we.

Obsidian Samctum's picture

By copying the west. They didnt think of it first, they copied.

indygo55's picture

"US student scores in mathematics and science (PISA) lag badly behind Asian countries. "

And why is that? How did that happen when our goverment is so involved in the education system? Incompetence? Or intentional degrading of the majority of the nations children who attend public schools? This happened right under their noses and OUR noses at the same time. There is a larger agenda here and its been there for a very long time. Parents need to get involved rather then ignoring this and expecting the goverment to make it right. That ain't never gonna happen. 

Bay of Pigs's picture

It isn’t just math and science. Many kids today are terrible at english, history, geography and a bunch of other subjects.

They are great on using smart phones and eating though.

nmewn's picture

They've cornered the market on being whiny little bitches too ;-)

new game's picture

captain, the ship is off course and the navigation isn't working.

response: full speed ahead, damn the _________...

gatorengineer's picture

Its not accidental, or incompetence....  Its intentional....  as you say part of a longer larger agenda...  The gutting of the American education system has been one of the few sucesses this country has achieved in the last 40 years.

desirdavenir's picture

tv and social networks certainly have a lot to do with the dumbing down of children. Also, what do you think happens to a child's mind after 2h of corporate competition to grab his attention by every legal means ? That this child can still pay attention for the rest of the day at school ? Ditto for a child who doesn't sleep enough. No time for paying attention at school. Corporations decided to sacrifice long term education for short term advert-based gains, and irresponsible citizens let them do it. No other agenda, here, just lack of regulation.

Xena fobe's picture

The 1965 immigration act tells you all you need to know.

css1971's picture

You can't out-compete your economic opponents with a mediocre workforce.

That's exactly what the Chinese did for 30 years. It's all about price.

 

Fact of the matter is, the US is suffering from the Triffin Dilemma.

later in the 1960s, it was rediscovered in the context of the Bretton Woods system by Belgian-American economist Robert Triffin, who pointed out that the country whose currency, being the global reserve currency, foreign nations wish to hold, must be willing to supply the world with an extra supply of its currency to fulfill world demand for these foreign exchange reserves, thus leading to a trade deficit.

https://en.wikipedia.org/wiki/Triffin_dilemma

Or put another way, The Dollar makes Americans expensive. In order to compete internationally, the US has to give up The Dollar as world reserve currency. And that isn't going to happen voluntarily.

The Dollar is what finances The American Empire. The enormous military etc. Trump isn't going to be able to change it. The only thing which will is total collapse. These things always run until they physically can't anymore.

wafm's picture

China's workforce isn't and never was mediocre. Smart people like them learn quickly. Not like the infatuated exceptionally daft yankees...

Xena fobe's picture

Maybe you define intelligence a bit differently than westerners do.  Anyway China's fortune was only made possible by multinational corporations. 

thunderchief's picture

None of these countries want the war mongering USA at APEC,  its just a fart they are all forced to breath in.  Spewing security threats in Da Nang.  Go try and sell the locals  some Napalm.  Lots of nice French architecture in Da Nang.  Nothing from the The USA's time there, except some left over agent orange.

MK13's picture

US engineers less educated? Must not have worked with those who cheated their way through schools in Pakistan or India. Or recited their way through Chinese schools.

US engineers are being replaced by foreign ones, see Disney story.

veritas semper vinces's picture

Let's see what we have and what China and allies have:

On our side:

-as you said,uneducated,entitled ,obese,walking land hippopotamuses,interested only in noise they call music,pornography and violence they call movies,Iphones where they  text about their dog/cat,showing selfies and what they had for breakfast,who have not read a book in their whole life,who do not know what real art is.Look how they talk,walk and dress!You can not call them humans anymore.And they are the majority of the adults and basicaly ALL of the young population.

-no manufacturing base(moved by greedy corporations out of the country.This is not coming back so easily.The factories were destroyed,people lost skills)

-economy made of shoveling paper,extracting rent and from a shrinking middle class crushed from the top by the 0.01% that stole anything of value and from the bottom by an increasing mass of very poor people that need to be supported by all means. FIRE economy and war economy,which fattens MIC et comp and destroys the nation

-huge debt(personal,national,of the corporations,unfanded liabilities) ;said to be 160-200 Trillion $

-huge trade deficit: 600 Billion every year

-96 million people NOT in the workforce that they don't count,as if they don't exist

-49-50 million on food stamps

-more than 50% of the population receiving one form or another of federal/state help

-decaying infrastructure,a shame really

-a lying,dishonest press(MSM),presstitutes

-an entertainment industry promoting SATANISM(look at a music video,a fashion show,any Hollywood movie promotion:ALL displaying the one eye sign and Satanic,Masonic symbols.They are on the dollar bill,look closely.The Statue of Liberty is a Masonic one(Libertas,or Babylonian Ishtar,Egyptian ISIS,the Goddess of liberty,personal freedom,from which derived immigration,war and prostitution,also named THE MOTHER OF HARLOTS.Does it ring a bell?)They promote depravity,prostitution,violence,destruction of the family,multi gender culture. Their GOD,Satan,is a ONE EYE GOD,blind in the right eye(mentioned in the Koran too,Dajjal) and he is a hermaphrodite,with both female and male sex organs(Baphomet).Did you see how Madonna dressed like Baphomet? Plus they like to mock and desecrate Christian symbols,values.And people swallow all of this crap without any protest

-the killing of babies(500,000 Mil abortions and counting)

-all the power,all the wealth concentrated in a few (mostly Kosher hands)

-NO GOLD

-"money" not backed by anything,only war,destruction

-no vision for the future(sorry,political demagogy does not count)

China:

-they have a plan for the future,a vision of trade beneficial for everybody,construction of infrastructure and production of wealth,relations with other countries based on trade

-GOLD(it is said they have 30,000 -35,000 tons of GOLD)

-an alliance with Russia based on mutual benefits( and Russia has huge,untapped natural resources and GOLD)

-an educated population,who was lifted out of poverty ,and they have gold too.And they are many,1.3 Bil

--they are the world manufacturing power now

-they have debt,but it is INTERNALLY OWNED

-they have created almost all alternative financial institution to the western crooked ones,but the death of the petrodollar will come THROUGH TRADE first,then financially

-they are not permitting mongreling and destroying of their culture and race like the White Americans /Europeans do

-they have some problems from the one child policies,but they are correcting that

Did I cover everything? Probably not

But who do you think will win this?(I'm not talking war,as this will not be won by anybody)

Sorry for the long post

Tarjan's picture

"Did I cover everything?"

I would say that you covered the important stuff, except for noting that the US has a big cost of living problem vs. China. No Obamacare here. Most workers get to their job, if they do not live in a company dorm, via an electric scooter that costs USD 400 to 450 new.

 ~ 

Obsidian Samctum's picture

Lol this is how you crash world economy.

Infinite QE's picture

Compete with what? A drugged and obsese populace who are barely functioning from home to pharma outlet. Seriously. The nation needs at least one generation to purge the evil from itself.

And by Monday morning, the GS globalists in the WH will have unwound all of Trump's tough talk.

RawPawg's picture

Show'em Who's Boss

Tear up those New Agreements

be careful,tho,the ink still might not be dry yet

lester1's picture

Fuck the WTO. Who the fuck made them in charge of trade??

 

Go Trump!

Pinot-Noir's picture

errr...Zionists.https://thezog.wordpress.com/who-controls-the-economy/

 

Have a look at this site, you will find it very informative...really!!

nmewn's picture

lol...still can't get over it...

         CNN Breaking Fake Nuuuz

Trump-Hitler-Putin overfed Japanese goldfish! 

overmedicatedundersexed's picture

Lludwig:

as a leader your job is to motivate and be optimistic..what don't you understand about that??

he is one man speaking alot of truth, when for decades we have had lying self dealing fools for presidents, who have made tragic errors time and again, while getting $500,000 speaking fees from other nations, and none(msm) dare call them bribes..

in support of your comments,,in baltimore 13 high schools have no students (0) who passed basic math tests..mediocre is not the word for that. tragic.

BritBob's picture

Xi has his own friends and separate agenda...

China – Argentina – the Falklands

In tune with Macri's words, Xi Jinping thanked Argentina "the support they have given us for our claim of a single China as we support theirs for the Falkland Islands."  (Telam 17 May 2017)

Suppose China didn't take territory in the 19th century?

Google: ''Falkland Islands – The Usurpation'' (1 pg) to see why Xi's supporting a lame duck. https://www.academia.edu/34838377/Falkland_Islands_The_Usurpation

 

sister tika's picture

Nobody at this forum gives a shit about the Falkland Islands, Bob. Not one swinging dick. Not one sheila. Capishe?

Chuck DeBongo's picture

I do.

I always upvote BritBob.

nmewn's picture

Personally, I always had him pegged as a rabid little British monarchist.

Of course I'm sure there are rabid little Spanish monarchists running around pressing claims of the Viceroyalty of Rio de la Plata at this point too ;-)

Fireman's picture

More BS from britland Bob's damp pirate rock. Like the USSA you anglos live from war and peddling weapons to scumbags and of course the khasarian money laundering scam. Viva las Malvinas, hijito.

 

https://www.almasdarnews.com/article/british-weapon-sales-saudi-arabia-r...

THORAX's picture

Clear articulation of America's economic interests. 

gunzeon's picture

somebody needs to tell him that:

 - in America businesses run the government

 - in China the government runs the businesses

 

addendum: many thanks to John Pilger for that line