US-China Economic Dialogue Has "Stalled; No Plans To Revive Talks": Malpass

Tyler Durden's picture

At the start of the year, one of the often repeated risk factors was that a trade war between China and the US could break out due to Trump's hardline stance on the US trade deficit with Beijing. Since then, such fears have largely faded as the status quo re-established itself, and trade between the two nations has proceeded largely unchanged. However, one year later, dark clouds may finally be gathering.

According to the FT, the Trump administration has put its main programme for bolstering economic relations with China on ice "as it complains about the two countries’ swollen trade imbalance and says Beijing’s efforts to liberalise its economy have gone into reverse." This was reveled in an FT interview with David Malpass, a top economic diplomat for the administration and who is currently undersecretary for international affairs at the US Treasury Department, who said that the Comprehensive Economic Dialogue (CED) with Beijing is “stalled” and that there are no plans to revive talks. The decision comes after the dialogue between the two countries in July ended without any tangible progress, the FT adds. The sudden breach in relations comes at an odd time, with Trump attempting to convince Beijing to pressure North Korea over its nuclear missile programme.

Meanwhile, the White House is taking an increasingly confrontational approach in its economic relations, including by opposing China’s bid for recognition as a “market economy” in the World Trade Organisation, as reported this morning.

Malpass spoke of the CED in the past tense, saying it had been intended to make progress on market liberalisation and the economic dialogue between the two countries.

“China is not moving in a market-oriented direction so for now the CED is also stalled,” he said on a visit to New York. “There is not a dialogue on restarting the CED. The critical step is for China to change economic practices to be more in line with global rules and global market liberalisation techniques.”

For now, without any tangible actions set to follow the latest verbal trade war escalation, we don't expect a formal reaction from China except for the occasional angry op-ed in Global Times. However, should Trump follow through with some tariffs on Chinese imports that could change, although whether even a full-blown trade war between the US and China will have any impact on these melting up markets is increasingly in doubt.

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buzzsaw99's picture

get pocahontas on the horn.

JibjeResearch's picture

We should give Pocahontas a chance... 

Pandelis's picture

what does this mean? el presidente is getting his war with china?

 

malpass??? is this the guy who run lehman to the ground?  now he is a top diplomat...where do they find these guys?

peddling-fiction's picture

"where do they find these guys?"

The gutter...

Squid Viscous's picture

another Jew said what?

mkkby's picture

Fuck talking to china. Impose the tariffs and let's get those middle class jobs back here.

Quantum Bunk's picture

China will continue with its epic retardation of buying UST dumb fuck chinkcs

Cautiously Pessimistic's picture

In a world of finite resources, and seemingly infinite population growth, the intersection of the two trend lines spell .....  W  A   R.  Hedge accordingly.......

JibjeResearch's picture

N.Korea is just a side show...

"Market Economy" and trade are the main issues.

DC is full of imbeciles... that's why we are losing.

 

Chupacabra-322's picture

Here's a good analysis revealing the real catalyst for Trump Armageddon: 

"The true motive behind the wars in the Middle East is to maintain the US dollar as Reserve Currency and the Petrodollar as the unit of value for a barrel of oil. thus financing the US economy and its Military enforcement machine.

Russia and China have been dumping their US Treasury Bonds slowly and now trade between themselves in Gold, Yuan and rubles.

They have formed a new Financial system with the AIIB (Asian investment and Infrastructure Bank). They have formed a new Bank Clearing System, separate from SWIFT. They have their own credit card systems.

China is building the NEW SILK ROADS and sea arteries to connect the countries of ASIA to Europe. Trade along these routes will be in local currencies, bypassing the dollar.

The Silk Roads by-pass the US Navy’s control of the sea route choke points and make their carrier fleets largely redundant as enforcement tools..

For the Washington war machine, Syria is but a stop along the road to Iran, then up into Central Asia to cut and control the Silk Road and impose the US dollar toll charge.

The New Silk Roads spell the end of the US dollar as the dominant currency and the end of the US military and Financial hegemon.

Thus Syria is a major pivot point in World History and will be a war to the end. Empires die slowly and usually decay from within, but this may not be the case with the neocon psychopaths reluctant to concede power.

There are other US allies with interests in subduing Syria; Saudi and Qatar to build their gas pipeline to the Meditterean and onto the European Market, this undermines Russian near monopoly of supply and will undermine their already fragile economy.

Turkey with its grab for the corridor to the oilfields of Mosul and subjugation of its rebellious Kurds.

Israel and its Oded Yinon plan to break-up Syria and grab land, also to cut the Shia Crescent connecting Iran to Hezbollah in Lebanon.

European countries who are reliant on Russian gas energy supplies and wish to have another supply source from the Gulf States.

So there are many countries ready to feed on the carcass of Syria, if it is defeated."

JibjeResearch's picture

I have been following everything you have written.

My conclusion:

1. US policies is to separate family.

2. China policies is to bring family together.

The policy of bringing people together will win in the long run.

It's a shame to have imbeciles in DC.

HurricaneBrasky's picture

I'm more of a questions than answers guy...

Why is Syria so important on this new One Belt/Silk Road? For the path of this One Belt/Silk Road, Iran has a shared border w/Turkey then to Bulgaria and into Europe. Iran also has a border w/Azerbaijan and Armenia where both avenues could go to Georgia than into Europe?

Sonder's picture

The eagle can't survive without the dragon, and for now, the dragon can't survive without the eagle. Until this simple fact changes, all of this crap is just lip service and saber rattling. Wake me up when China finds a new mass consumer base, then we might see some serious shit.

JibjeResearch's picture

Hey... DC puts the top 1% first and went to China, how they are complaining?

 

Sonder's picture

Because they're petulant brats who aren't content to merely rape the peasantry and artisans. 

ReturnOfDaMac's picture

We elected a crooked, senile, incompetant, dotard, but really, what choice did we have ?

ZeroBeek's picture

We should give Trump a chance......

OK, more chances 

MEFOBILLS's picture

Do international trade with Bancors, and then no trade imbalance.  When trade flows become unbalanced, then nations adjust their exchange rate relative to bancor.

Bancors are not money, but an accounting device that matches goods and services flow between nations.

There can be no real "nationalization" of countries unless the money problem is addressed.  Private Banker Federal Reserve notes, masquerading as U.S. dollars has funded Illuminism and World Goverment.  This world government is private corporations and Oligarchy.  

The rent seekers take a cut in international "deals" and they take their cut when they create bank money.  Therefore, the economic engine of the world has leakage that goes on to pay the parasites.

All foreign trade is only barter.  This is a rule like gravity, but unfortunately people can ignore it - and those that pretend this rule doesn't exist, are always on the take.

China has been on the take for some time now, especially the stealing of America's patrimony.  Wall Street is on the China gambit, by exporting jobs and taking wage arbitrage.  

Trumps "deal making" is a limited attempt to fix the outright stealing going on, but it really takes something more substantial.   Unfortunately, if a person goes to college and gets a degree in economics, he/she is turned into a walking moron - a head filled with shibboleths.  You cannot graduate unless you toe the party line.

So, now we have a U.S. government filled with populists who know nothing, and are funded and bribed by our bankster friends, and tied corporations.  Their advisors  have gone to skooools, and their heads are filled with mush... or oatmeal as Putin would say.

A proper money supply is national and sovereign.   Money's true nature is law, so national money is to stay confined to a countries borders.  Bancors are used for international trade.  Trading Banks, like what Schacht used in Nazi Germany can be used by nations as "credit" to stimulate the future and work toghether.  A trading bank isolates the debt instruments to those banks, where said instruments can be jubileed and managed.

We really don't need our ((friends)), their usury methods lead to death of civilizations and constant war, the reduction of man to an animal.

www.sovereignmoney.eu

not a yahoo's picture

What you mean 'came at an odd time'? Obviously China did not use their influence to prevent NK from this latest launch, and this is retaliation. Does the media have to spell out every narrative for you? 

Aerows's picture

That's what I am wondering.

CJgipper's picture

Great.  Implement import tariffs on china already and be done with it.  They're not controlling kim sum crazy guy so fuck them.

rwe2late's picture

If you are a US citizen, it is a self-serving diversion for the pot to decry the kettle.

you should first be asking about your own country, the USA

"controlling" Saudi Arabia or Israel or the ISIS/AlQaeda/CIA etc. extremists?

HurricaneBrasky's picture

Would those that fill the power vaccuum left by a diminished/absent US geopolitical presence be a positive for indviduals on a large scale? Things wouldn't become more fair or equal. They would just become more Chinese or Russian themed corruption.

 

Proxy warfare is an easier pill to swallow.

Brazen Heist's picture

So Trump hopes to MAGA by extorting China with blackmail.

Fuck that. If he had any balls he would stop blowing the MIC with this Korea fetish and instead focus on fixing America.

Let it Go's picture

Follow the money and the United States huge trade deficit with Mexico becomes even more disturbing as you begin to understand where the money eventually ends up. When you start thinking about all the money and jobs we shift into Mexico each year you would think by now Mexico would be rolling in cash.

A bit of research quickly confirms that the money Mexico receives by way of trading with America quickly passes through its lands and flows to Asia. It could be argued that when all is said and done we are still transferring our wealth to the far east only by the scenic route. More on the problem with this in the article below.

 http://Follow The Money-The US Trade Deficit With Mexico Benefits China.html