China's Leaders Are Divided Over Trade War With U.S.

NPR ^ | 08/27/2019 | Emily Feng, Amy Cheng

[SeekAndFind]

When the White House decided to levy tariffs on goods from China, U.S. leaders were divided on whether a prolonged trade dispute was a wise course of action.

Now, so is Beijing.

China's leadership is being confronted by government factions offering contradictory approaches to resolving the ongoing trade war with the U.S. Some argue for cutting a deal as quickly as possible to save China's economy; a vocal and growing group of hawks argues China should push back against the United States and avoid an agreement at all costs.

As U.S. and Chinese negotiators head into their 13th round of trade talks in September, both sides have been given unclear signs about what they hope to achieve from a dispute that has outlasted all expectations.

On Monday, the two governments appeared to be seeking to lower tensions. China's Vice Premier Liu He, its lead trade negotiator, said, "China is willing to resolve its trade dispute with the United States through calm negotiations and resolutely opposes the escalation of the conflict." Trump said he agreed, telling reporters after a Group of Seven meeting in France that he thought the vice premier's comment was "a good thing."

That followed a slew of tit-for-tat tariffs.

On Aug. 1, President Trump walked back a tentative truce discussed on the sidelines of the Group of 20 summit in Osaka, Japan, by tweeting his decision to impose an additional 10% tariff on $300 billion worth of Chinese goods on Sept. 1. Some of those import duties have now been delayed until Dec. 15, but many in China saw the reversal as a betrayal.

Since then, trade relations have only worsened. Last week, China announced new, matching tariffs on $75 billion of U.S. goods and said it would resume duties on U.S.-made automobiles and car components.

[SeekAndFind]

SOURCE: http://www.wyzxwk.com/Article/guofang/2019/05/402950.html

TRANSLATION FROM CHINESE TO ENGLISH ROUGHLY:

“Today, China is fighting two wars on one battlefield with the U.S. — a composite of economic and military conflicts, Trump will first take China’s money and then take our lives.”

China’s hardliners are calling for a war of attrition, in which China outlasts its rivals, even at the cost of global trade. The idea is attractive among those who believe the country’s one-party system and control over its most significant monetary and financial levers would allow it to beat the U.S. in a game of chicken.

[BeauBo]

Good Cop/Bad Cop?

The old Mutt and Jeff tactic?

The Iranians have long made hay by branding some of their guys “reformers” vs. “hardliners” to string along gullible Westerners.

[Balding_Eagle]

vocal and growing group of hawks argues China should push back against the United States and avoid an agreement at all costs.

I am with China on that.

Go for it, if you have the courage.

[Reeses]

the country’s one-party system and control over its most significant monetary and financial levers

That's their biggest weakness that can be exploited because all business decisions are made politically for staying in power. Centralized data collection and planning by administrative bureaucrats never works. It's surprising the number of economists that think China has a big advantage with the groupthink one party control.

[gandalftb]

China fully intends to replace the USA as the global economic powerhouse.......someday.

There are two Chinese factions:

One that wants to stomp their feet.

One that wants to hold their breath.

Either way, they are throwing a tantrum because we won’t kowtow to them like everyone else.

[Vigilanteman]

Every day that China fails to cut a deal means more encouragement for major American customers (not just Home Depot) to move their sources elsewhere. They will NOT, just as easily, move back once a deal is cut.

India, Vietnam and scores of other countries are more than willing and increasingly capable to pick up the slack.

[bigbob]

“The idea is attractive among those who believe the country’s one-party system and control over its most significant monetary and financial levers would allow it to beat the U.S. in a game of chicken.”

in other words, the CCP.

Some observers are wondering if the CCP will last another year...think about that.

[11th_VA]

Every week they delay, another factory opens in Vietnam and Thailand - costing hundreds of jobs in China

[PGR88]

the country’s one-party system and control over its most significant monetary and financial levers

Which is also why it will extremely difficult for China to implement any real reforms that would be acceptable to Trump (and me). They would have to give up the ability to meddle in, and centrally plan every part of their economy. That is against the CCP's DNA.

[jimtorr]

.....those who believe the country’s one-party system and control over its most significant monetary and financial levers would allow it to beat the U.S. in a game of chicken.

They should ask the USSR how well that worked out for them. Of course, we can not stay the course if Trump cannot win reelection. China has already announced they will be working to defeat him in 2020.

[11th_VA]

China fully intends to replace the USA as the global economic powerhouse

And they will. We have entered the final stage of our domination - the age of decadence.

The Fate of Empires by John Glubb

[Dave Wright]

If China leaders are still followers of “The Art of War” they will resist going up against the US where we are stronger. We still are the reserve currency for the world and most cross border trade is done in dollars. This means that their buying power is weakened by devaluation of the yuan as investors sell yuan for dollars and leave the country. The policies that were negotiated with the US are almost identical to the policies of the WTO that they agreed to when they joined but never followed. The difference is the US wants to put enforcement behind the words and China is balking at the idea they can’t cheat anymore if they accept the US terms.