Trump Warns Xi That "Disappointing" Surge In China Trade Deficit Is "Not Sustainable"

President Trump and China’s President Xi Jinping, held a call yesterday, according to the White House.

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While President Trump "expressed hope" that the resumed inter-Korean dialogue may prompt a change in North Korea’s destructive behavior, perhaps more notable was the fact that President Trump used the call "express disappointment that the United States’ trade deficit with China has continued to grow" and made clear that "the situation is not sustainable."

Indeed - China's Trade Surplus with the US grew notably in Trump's first year...

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The full readout is below:

President Donald J. Trump spoke yesterday with President Xi Jinping of the People's Republic of China to discuss recent developments on the Korean Peninsula.

President Trump and President Xi acknowledged the resumption of inter-Korean dialogue and expressed hope that it might prompt a change in North Korea's destructive behavior.

President Trump committed to sustain the United States-led global campaign of maximum pressure to compel North Korea to commit to denuclearization.

The two leaders also discussed trade issues, and President Trump expressed disappointment that the United States' trade deficit with China has continued to grow. President Trump made clear that the situation is not sustainable.

It is unclear just what Trump will do about it but as we noted previously, it seems China is deeply worried about US trade sanctions, and more broadly the US taking  more assertive in rectifying perceived issues in the bilateral trade relations. Every Administration goes through an episode of promising to deal with Chinese trade interventions and ends up with a watered down, vague agreement. China's pre-emptive action (with its Treasury purchase headlines) suggests that this time the level of worry is different.

Of course this week also reportedly sees the launch of the Petro-Yuan futures contract.

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Comments

YUNOSELL SickDollar Tue, 01/16/2018 - 11:49 Permalink

China's response: "OK, OK.... Can we please buy some more of those beautiful green paper bills that you have mastered printing in exchange for more of our manufactured goods? What else have you got that we would want?"

 

Yo Trump, you also have control over the trade deficit so don't blame this all on others -- You can stop buying shit!

In reply to by SickDollar

NumNutt SickDollar Tue, 01/16/2018 - 12:09 Permalink

East!?!? HHAHAHHAHHAHAHA?! Who? India? Pakistan? Afghanistan? Iran? Sorry dipshit, they make the crap in the east (for now) but they can only sell it to the west. You think the Chinese are going to be able to absorb all the products they ship to the western world? I think not. Trump pulls the plug on the China trade deal and it will be sucky sucky for China, oh and the west will have to figure out how to manufacture their own cheap plastic crap (again).

In reply to by SickDollar

LightBeamCowboy NumNutt Tue, 01/16/2018 - 13:23 Permalink

The last number I heard was the US accounts for just 12% of China's export market, in spite of nearly everything you see on US shelves being made in China. If you walk into a store in Africa the light switch or stereo on the shelf will be Chinese, just like in Europe or South America. I've been saying for years that China had a population large enough to swallow every manufacturing job on the planet without a hiccup, and I was right.

In reply to by NumNutt

LightBeamCowboy NumNutt Tue, 01/16/2018 - 13:32 Permalink

The US never did really make "cheap plastic crap". We bought a used classic made in USA hand crank egg beater recently on eBay for $7, probably made in the 50's, in perfect condition and built to last forever. I recommend prowling flea markets and garage sales for old made in USA tools because they are better than anything new out of China. That said, and this should scare us all, I can remember when "made in Japan" was an epithet for poor quality, and look what happened there: a few years later their manufactured goods rivaled the best in the world.

In reply to by NumNutt

just the tip LightBeamCowboy Tue, 01/16/2018 - 13:59 Permalink

i got a craftsman table saw made in 1956 in some podunk town in ohio.  use it every few months.

the bostitch nail gun i got has this, and i know you will not believe it, it has "made in milwaukee" stamped on the handle.  i don't know if i spelled milwaukee correctly or not.  i don't type caps if i can keep from it due to rheumatoid arthritis concentrated in my pinkys.

In reply to by LightBeamCowboy

LightBeamCowboy johnduncan78 Tue, 01/16/2018 - 13:38 Permalink

Not so much... Labor in a $15 T-shirt made in China, 3 cents. Labor in a $15 T-shirt made in USA, 9 cents. Total cost structure must be looked at, and US can fix most of our problems with the stroke of a pen. BTW, I spent the last 30 years of my working life as an independent product designer and hands-on manufacturer in my own facility. Believe me, turning raw materials into saleable products is lucrative, even if all done in the US.

In reply to by johnduncan78

MK ULTRA Alpha johnduncan78 Tue, 01/16/2018 - 16:39 Permalink

I don't buy Chinese, I buy European military surplus, brand new wool East German Army boot socks $2, Dutch Army wool boot socks $2. Brand new.

I bought a Romanian wool great coat with wool so thick it was incredible, about three times the thickness of the wool blankets the army has, I bought the great coat for $25. All with free shipping. Used but in perfect condition.

I have everything, even my 120 liter back pack is German Army Flextarn camo, it's called the Alpine, I was first in North America to buy it. It's made of some kind high quality material, $80 and free shipping around three years ago. Brand new.

Austrian army boots make Chinese Hitec and Magnum tactical boots look like cheap boots which wear out in two years. Austrian army mountain boots, $30 used in perfect condition. Austrian combat boots $30, Austrian snow books, real special, $40. Last a life time and much better than  US manufacturing, because the dates are the mid 80's.

I have so much gear I could sit here all day writing about it. Woodland camo field pants, brand new $5 each, free shipping. brand new. I have military surplus parkas, coats, and a good one was the three pack of German Army pants and field pants winter liner, brand new $6 each. I'm wearing the German army parka winter liner, $18. I have the complete German army winter and wet weather Flextarn camo special simplex better than Goretex parka and field pants with suspenders. with liners and everything. Field hats, Austrian army winter pants etc.

These products will last a life time, Chinese products wear out quick or break.

German army poncho, the real thick real poncho, in perfect conditions, covers back pack and entire body, old kind in perfect brand new condition $22, last forever, German high quality manufacturing of 80's and 90's before the invasion of cheap low quality Chinese products forced down Western nations quality.

Western countries don't have to compete based on quality when the Chinese con the consumer with low quality products using former quality brand names. I can write a long list of Chinese products which were no good. Some posters cite the tech products as proof of Chinese product quality- ie lap tops, those are from western controlled factories. But most Chinese products are of low quality.

We read all the time about pets and people being killed by poison and other reasons purposely shipped from China to hurt us. The federal government didn't protect Americans from being destroyed in the China con.

 

 

In reply to by johnduncan78

MK ULTRA Alpha SickDollar Tue, 01/16/2018 - 18:48 Permalink

sportsmansguide is good, swisslink is good and militaryclothing is good but they charge for shipping unless you can get the half off shipping coupon code number from them.

From my research these are good and also, with clearance and sales. All three just finished a massive sales period.

I work with them to get the right size. One must learn to order a size larger for Euro gear, sometimes two sizes larger. I ordered larger by one and half size on the Austrian boots and they fit perfect. The East German boot socks were made of the soft wool, most incredible socks. I have a Austrian utility belt with all the bags and gear fitted on it, got a US Army bayonet dirt cheap with the scabbard in perfect condition. Got US Army load bearing vest dirt cheap new, I have everything, getting ready to order the Finnish army wool jacket, incredible thick wool value.

One should have winter gear because the cold is your friend. If no winter gear, then die in the cities and suburbs. Remote northern regions offer excellent protection. The region is sparely populated, good ground cover, water and game/fish, gold panning, sluice box, The masses can't come north in a meltdown because they don't have the gear. Never sleep on the ground in a cold region, you will die. I bought a US Army extreme weather sleeping bag modular system for $80 on craigslist, lucked out in perfect condition. The government paid over $700, every where on line it's $200-$300 for new and used. It comes with a Goretex bivy, it's a 3 unit modular system. But it must be off the ground even though it says sub zero this and that. always make some type of cot to sleep off the ground and make sure your dog is off the ground, if you don't have a dog to sense for you, then don't even try. Extra wool coats, wool pants, wool soaks etc can be used for more insulation.

 

In reply to by SickDollar

junction WolfgangCire Tue, 01/16/2018 - 11:49 Permalink

The only stuff America manufactures totally within this country are the satellite beam weapons used to redline large swathes of California, torching Santa Rosa, Montecito and other cities.  Maybe California will get  a break now that the Zuma satellite failed to get into orbit.  That Zuma satellite probably contained working beam weapons, needed since heat ray weapons on satellites have a limited life span when used excessively.  Such as to torch a big state like Cali.

In reply to by WolfgangCire

junction yellowsub Tue, 01/16/2018 - 13:08 Permalink

Military grade RDX explosives in the elevator shafts was used to blow up the A and B towers.  Directed energy weapons were probably targeted at the top floors of One World Trade Center, occupied by Cantor Fitzgerald.  The company behind the Brady multi-billion dollar gold bond scam.  In Santa Rosa, California, there are photos of one side of the street, all the houses burned down with the trees unmarked.  The other side of the street, nothing, no signs of fire damage.  Strange fires that burned almost circular holes in fireproof red clay tile roofs of homes.  The red in the clay tile comes from the high iron particle content in the clay, iron that would react explosively when hit with high energy microwave radiation.   

In reply to by yellowsub

Antifaschistische BitchesBetterR… Tue, 01/16/2018 - 11:50 Permalink

Mr. Trump,

I've noted here before.  Trade Def's are really a fiat currency phenomena.  Of course, in a barter like economy deficits do not exist.  I give you a chicken, you give me two baskets of oranges...we walk away settled.

In a fiat/debt currency regime it is impossible for a trade deficit to last forever.   Eventually, you stack dollars and become desperate for something to do with them.  (i.e. buying real estate in San Marino California and not giving a damn what price you pay, because you're just trying to dump your dollars)

Eventually, the price of Chinese goods must rise and a balancing occurs, but the timeline may outlast your presidency, and China end up in a Japanese style dilemma in the next decade.

Rather than having a policy war....why don't you start a buy American campaign featuring great American companies or "made in America" products.   Most people don't even know what to look for if they want to "buy American" products.  And they are hard to find.

by the way...why are foreigners allowed to gobble up US real estate?   We aren't allowed to buy any property in China?  We can start there.  Disallow Chinese from buying property....but allow them to invest in US REITs, etc.

In reply to by BitchesBetterR…

css1971 Antifaschistische Tue, 01/16/2018 - 12:59 Permalink

Property in China is leasehold only (70 years). You never own it. And foreigners can buy it I'm pretty sure.

And the US had a trade surplus until the Nixon Shock in August 1971. With gold as currency you can't just print more when you want to import more. You have to make something and sell it. So no deficit.

In reply to by Antifaschistische

Oldwood JibjeResearch Tue, 01/16/2018 - 11:49 Permalink

If we would pull our head from our asses we might discover that if we really gave a shit where companies resided, all we would have to do is tell them....by refusing to buy imported goods.....but that might just be asking too much.

We use ignorance as an excuse for doing self destructive things, when all we ever had to do was ask the question....how long will I have a job if everything I purchase is made elsewhere?

In reply to by JibjeResearch

Oldwood chinooky47 Tue, 01/16/2018 - 13:10 Permalink

We make choices based on short term or immediate reward or cost. Those choices close the door on opportunities for our future, leaving us even poorer choices, HARD choices. Given we deferred to the easy choice at a time that the harder choice would have had minimal negative consequences, what hope do we have that now that those decisions are difficult we will finally choose properly?

Nothing happens overnight, be it our trade deficits, our general economics or world politics and conflict. The constant failure to choose correctly because there is always an easier, more profitable, less costly alternative available.

We want it all with NO sacrifice.

What is important is to recognize what it is that has made those easy choices available....DEBT... and the redistribution policies that have allowed us to sustain our spending as well as millions not in the work force.

If forty years ago we had see our jobs failing and there had been no "social safety net" to ease the pain, no debt to buy what our wages no longer sustained, this would have not happened.

In reply to by chinooky47

earleflorida Oldwood Tue, 01/16/2018 - 12:12 Permalink

listen up...

America can produce (manufacture) the goods here in the USA!

Problem is the Corporations could give a fuck about the American people (92.75%) and are making 1000% profit offshoring, whereas if they came stateside their profit would only be ~ 150% or less, but in line with historical (pre-NAFTA & WTO) statistics.

There are thousands of manufacturing companies in America that still can compete with offshoring using home-grown labor and 'Made-in-America' products.

Appliances (big ticket household items) cost the same to make in America even with our wage differential and still make a profit.

 Remember this important point ::  the USA is 95% self sustainable on its own via our vast autarky.  We are self-sufficient having all raw materials needed to survive without trade if need be.

Bottom Line: USSA Corporations and [USSA] Globalist 'MAGA' oligarch have only one allegiance, and that is to the 'Almighty Dollar' and whose dollar doesn't matter as long as it is the KING currency [of] species?

In reply to by Oldwood