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Bye Bye Trade War? China Plans $1 Trillion Buying Spree to Reduce US Trade Deficit
xi jinping us-china trade war
China proposes major buying spree of U.S. goods to eliminate trade gap. | Source: Shutterstock


China has extended the olive branch back to the United States by offering a path to eliminate Washington’s burgeoning trade deficit with the country, Bloomberg reported Friday. The news comes less than a day after The Wall Street Journal reported that the Trump administration was considering lifting tariffs amid the ongoing trade war.

China Proposes Six-Year Buying Spree
Citing sources familiar with the matter, Bloomberg reported Friday that China has offered to significantly boost its purchase of U.S. goods over a six-year period in an effort to re-balance trade between the two superpowers. By increasing its annual imports from the United States, Beijing would reduce its trade surplus to zero by 2024. That would require a spending boost of more than $1 trillion.

Last year, Beijing’s surplus with the U.S. stood at $323 billion.

Trade War Truce?
Trade talks between the U.S. and China are progressing at breakneck speed, a strong sign that both sides are looking to end the tariff dispute before March. That’s when the 90-day truce agreed to by President Donald Trump and China’s Xi Jinping is set to expire.

U.S. officials are reportedly considering lifting tariffs on Chinese imports to give Beijing a bigger incentive to negotiate a fairer trade deal. Last year, the Trump administration announced duties on $200 billion worth of Chinese goods and threatened additional tariffs if Beijing responded. Tensions have simmered down since December when the leaders of both countries met face-to-face on the sidelines of the G20 summit in Buenos Aires, Argentina.

Last week marked the first face-to-face meetings between Chinese and American trade delegates since the G20 summit. The meetings, which went a day longer than planned, resulted in China agreeing to purchase more U.S. farm and agricultural commodities. Chinese officials have also agreed to grant wider access to mainland markets to U.S. firms.

Several risks stand in the way of a comprehensive end to the trade war. Chief among them is the ongoing drama involving Huawei Technologies Corp. U.S. federal prosecutors are following up on civil lawsuits against the tech giant by launching a wider investigation into the company. According to The Wall Street Journal, the investigation has reached an advanced stage and could lead to an indictment shortly.
https://www.ccn.com/bye-bye-trade-war-china-plans-1-trillion-buying-spree-to-reduce-us-trade-deficit/amp/?__twitter_impression=true

U.S. thought they can do it all alone but never knew it takes two to tango

Donald Trump still got what every other past POTUS couldn't get.

Seems he is a kind of rough diamond fella.

PlayerMeji:
Donald Trump still got what every other past POTUS couldn't get.

Seems he is a kind of rough diamond fella.

Biggest way for China to buy more America is to buy American companies since they already got the dollars. But you just watch America say, "we ain't selling you that", when they come buying.

Comical smh!

PlayerMeji:
Donald Trump still got what every other past POTUS couldn't get.

Seems he is a kind of rough diamond fella.

Wait to see what China will buy. Trump is a fool. You don't govern a sophisticated country in a sophisticated world by arbitrary gut-feel and childish eh3o tripping.

China is a country run by hundreds of thousands of civil servants with minimum of MBA as qualification. Even the politicians are like civil servants and you are tested in leadership for decades before becoming President.
Not some guy who spent years cheating plumbers and building contractors to become President and does not know how to comport himself.

China is also one party state so its 1.6 bn people focussed intensely on the same goal. They craft strategy and execute it with discipline.

Three gbosa to Trump. The US is winning. This tweet was in 12/14/2018. Now the tweet is fulfilled.

SternProphet:


Wait to see what China will buy. Trump is a fool. You don't govern a sophisticated country in a sophisticated world by arbitrary gut-feel and childish eh3o tripping.

China is a country run by hundreds of thousands of civil servants with minimum of MBA as qualification. Even the politicians are like civil servants and you are tested in leadership for decades before becoming President.
Not some guy who spent years cheating plumbers and building contractors to become President and does not know how to comport himself.

China is also one party state so its 1.6 bn people focussed intensely on the same goal. They craft strategy and execute it with discipline.

Forget all this your uninformed assumption. Do you even know what this trade war is all about?

Let me put it in a layman language for easy understanding. Trump started the trade war accusing China that China sends more goods to the US to get more money from the US than the US sends to China to get money from China. Meaning that China needs to stop selling only but they need to buy more US products to balance the exchange between the two countries which actually makes business sense.

How can you be selling your stuff to me and refuse to buy mine? If you sell me five stuff, I must sell you five stuff too. Period! That’s what Trump is saying. Remember Trump has been a business man all his life. That’s fair business exchange.

I understand you clearly but I think Trump knew the best way to play politics with these Asians is not kid glove diplomacy the likes of which Hillary Clinton would have played but to be brutally honest and stern in your dealings with these people.

Asians are smart and shrewd and the best way to deal with them is to let your foot down; totally down.

Remember this issue of trade deficit had been there even before Bill Clinton stated it. And the Asians dribbled and dribbled the Americans up till this very moment simply becos other Potus were being formal in their diplomacies but not Trump.

He had to let them have it; America is the biggest economy in the world and they had to respect that.

Good call from a Good/Bad Leader.

You see that; they have LEADERS we have RULERS!

SternProphet:


Wait to see what China will buy. Trump is a fool. You don't govern a sophisticated country in a sophisticated world by arbitrary gut-feel and childish eh3o tripping.

China is a country run by hundreds of thousands of civil servants with minimum of MBA as qualification. Even the politicians are like civil servants and you are tested in leadership for decades before becoming President.
Not some guy who spent years cheating plumbers and building contractors to become President and does not know how to comport himself.

China is also one party state so its 1.6 bn people focussed intensely on the same goal. They craft strategy and execute it with discipline.

US trillions of dollars in debt. This sum is unimaginable to count, 21 trillion. It would take generations to climb out of this hole. Trump is a distraction, created by television, lights and cameras. Buy into the game of the Jesuits who own the US federal bank that prints their Saturn talisman you call the dollar.

budaatum:

Biggest way for China to buy more America is to buy American companies since they already got the dollars. But you just watch America say, "we ain't selling you that", when they come buying.

Comical smh!

The average US citizen thinks typically different, from what ur post insinuates. China buying a significant American company? It's even possible for you to impregnate a goat, than for that to happen.

ScarletBrace:


The average US citizen thinks typically different, from what ur post insinuates. China buying a significant American company? It's even possible for you to impregnate a goat, than for that to happen.

Of course the "average US citizen thinks typically different". Many of them think China is a third world country too. And indeed US would rather not sell to China, but when the choice is sell or go bust we'd see which way they'd jump.

Here's a bold prediction for some day in the not too distant future. China buys Apple! You'd see it coming when Apple decides to list on the Shanghai Stock Exchange.

drakeli:
Forget all this your uninformed assumption. Do you even know what this trade war is all about?

Let me put it in a layman language for easy understanding. Trump started the trade war accusing China that China sends more goods to the US to get more money from the US than the US sends to China to get money from China. Meaning that China needs to stop selling only but they need to buy more US products to balance the exchange between the two countries which actually makes business sense.

How can you be selling your stuff to me and refuse to buy mine? If you sell me five stuff, I must sell you five stuff too. Period! That’s what Trump is saying. Remember Trump has been a business man all his life. That’s fair business exchange.

Why should I buy from you just because you buy from me? If your market is no good why should I spend my money in it? Is it my fault that you are greedy for my product but I'm way too smart to buy your junk?

Abeg getoutofhere! If I sell you five stuff and refuse to buy your stuff, yes do a trump. But just you remember that your supposed Made in America rolled off a manufacturing line in Shanghai. And when you don't buy, it's your Apples and soyabeans that rot!

Refs
Falling grain prices (as the charts below show) since their peak in 2012/2013 caused farm revenues to drop by approximately 50%, making it harder for farmers to cover their debt payments. The situation was exacerbated by the recent trade war that led to China slashing their imports of American soybeans, which has resulted in a soybean glut.

On Wednesday, Apple CEO Tim Cook wrote a letter to investors revising downward the company’s revenue guidance for its first fiscal quarter from an expected range of $89 billion to $93 billion to $84 billion now. While I’m not one to believe it’s the biggest of problems, there are some who say it’s the latest sign of real trouble inside Apple.

For his part, Cook acknowledged softness in the iPhone division. And he specifically said that China was largely to blame. More than 100% of Apple’s revenue decline happened in China, Cook said, and a combination of a weaker-than-expected Chinese economy and trade problems between China and the U.S. combined to create issues.