China Reportedly Offers $200BN Trade Deficit Reduction

While President Trump warned during a Thursday press conference that a trade deal with China is far from guaranteed, it appears the White House might have won at least one concession during talks with Vice Premier Liu He Thursday afternoon.

Reuters is reporting that China has offered the US a trade-deficit reduction package amounting to roughly $200 billion annually. Demands that China take steps to reduce the US-China trade deficit have long been a part of Trump's rhetoric, as have greater protections for US intellectual property. It was not immediately clear how the value of the package would be determined. One source told Reuters that Boeing would be a major beneficiary of the Chinese offer. The company already sells about a quarter of its aircraft to Chinese buyers.

Of course, as the New York Times points out, any deal to reduce the trade deficit offered by the Chinese wouldn't be realistic, given the structural hurdles to buying more American exports. And critics worry that, by taking the bait, Trump could endanger other parts of his agenda, like the IP concessions.

Stock futures rose in a kneejerk reaction to the headline.

 

Comments

lester1 Thu, 05/17/2018 - 17:56 Permalink

So will some of those factories be coming bsck to America?

 

Every major city in America is littered with abandoned factories. $200 billion a year could reopen a lot of them!

Sudden Debt eforce Thu, 05/17/2018 - 19:54 Permalink

not really.

Every country has it's skills. America is a farming economy with a little of silicone valley crap and a few financial timebombs.

Azia is the production economy of the world

Europe is the knowledge economy

Africa is... dry and full of insects...

and so on!

In reply to by eforce

Brazen Heist Joe Trader Thu, 05/17/2018 - 19:43 Permalink

This is all so stupid. You can't just "demand" your way to higher productivity. You can't tariff your way to productivity. You can't un-deficit yourself without addressing the reserve currency issue.

These are myopic bandaid solutions. And its definitely not free market oriented. More like State Capitalism.

America, like most Western countries, have matured into services-based economies. If we're talking comparative advantages, this is it. The obsession with being a manufacturing hub again is a pipedream. 

Go get re-qualified and get a job in demand, and get with the times. Its called being adaptive, a highly useful life skill.

In reply to by Joe Trader

The_Dude Brazen Heist Thu, 05/17/2018 - 21:14 Permalink

But that is exactly how we got here...

we were told to trade with the commies so it improved their lot and eventually democracy and peace would come...

Instead we built up a totalitarian world power that mercantilistically strip mined our industry with slave labor,  stole our technology, now threatens us militarily and will eventually destroy our reserve currency status.

.. but let's keep doing what we've been doing. 

In reply to by Brazen Heist

Offthebeach jal Thu, 05/17/2018 - 18:30 Permalink

Actually a lot.

Take golf balls.  Fantasicly automated, German bearing quality standards.  Dominated by US.

But why?  No people, save top flyte floor "workers", automation and..........no shipping.....and.....low energy costs.

 

Any company that pushes leader quality....automates to chip fabrication standards....and leverages low energy costs...has the business 

In reply to by jal

Rex Andrus jal Thu, 05/17/2018 - 21:58 Permalink

One of my legal American citizen friends from China was a student protester there in 1989. We have many good things in America they don't have in China. Like private gun ownership, and all the freedoms that come from the barrels of many civilian guns. Our political corruption is nothing compared to their gangsters. This creep will die in prison within 1 year. https://en.wikipedia.org/wiki/Leland_Yee

In reply to by jal

Winston Churchill lester1 Thu, 05/17/2018 - 18:52 Permalink

Meaningless unless they're going to import  $200bn more from the USA to bring down the balance of trade.

Their new BRI trade is almost balanced at around $700bn in exports and the same in imports last year.

They have already replaced their US market  , they could see the US consumer was getting tapped out probably.

They also don't want anymore green toilet paper either.

In reply to by lester1

CashMcCall lester1 Thu, 05/17/2018 - 21:14 Permalink

Another Socialist has spoken. Do you mind telling me where the pretend $200 billion comes from? It is merely a hatched number that shows your cost of living decreasing by $200 in buying power. Nothing more. Trade Deficit to all but the TrumpStupids is the ratio of inflation / deflation following any single trade. But that is way over your head. So instead of explaining again in childish terms you can understand, this time tell me where the $200 billion is "LOST TRUMP" CASH is hiding before you order up a Pelosi Gov program to start up the clunker junker factories and roll out the Guberment product. 

In reply to by lester1

Rex Andrus JonNadler Thu, 05/17/2018 - 22:19 Permalink

Don Trump, I thank you for my MAGA hats and most of all for the spiritual renewal that they bring. They magically reveal my friends and expose concealed enemies. I owe you.

But Don Trump, I get all this junk mail from political mollusks using your name, begging for money. If you ask me yourself, in a way they cannot cheat, I will give generously and you can manage the funding as you see fit. Please create a Trump administration blockchain for better contributions to improve self governance. It must trade on major US crypto exchanges.

Thank you, President Trump.

https://coinmarketcap.com/currencies/trumpcoin/

Call Him, Winklevoss^2!

In reply to by JonNadler

Scanderbeg buzzsaw99 Thu, 05/17/2018 - 18:26 Permalink

That's what it should be. There are plenty of factory jobs. Americans just won't tolerate making $8 a day or suicide nets nor should they. The real problem is that Wall Street made a fortune shipping them to China and is propping the whole rotten structure up by subsidizing cheap imports with zombie interest rates and dollar inflation. The result is lost jobs, blighted communities and skyrocketing consumer debt.

The party will be over soon enough though. These deficits simply aren't sustainable and it's retarded to believe the Chinamen will give us cheap imports for dollars forever.

We're finally seeing much tougher talk on China from mainstream politicians and some though albeit reluctant coverage from the corporate media. Say what you want about Trump. This issue was being dismissed or outright suppressed until he addressed it.

We could suspend all trade with China and it would be a net increase to GDP. The only people benefiting from it are the very rich, ChiComs and ZOG. 

In reply to by buzzsaw99