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Westlake Legal Group > Posts tagged "China" (Page 80)

Trump’s Case for China Tariffs Fails to Persuade Americans

Westlake Legal Group 28survey-diptych2-facebookJumbo Trump’s Case for China Tariffs Fails to Persuade Americans Voting and Voters United States Politics and Government United States Economy Trump, Donald J Prices (Fares, Fees and Rates) Presidential Election of 2020 Polls and Public Opinion International Trade and World Market Customs (Tariff) China

As President Trump weighs a possible resolution to his trade conflict with China, one factor may be pushing him toward a deal: His trade policies are broadly unpopular with American voters.

Large majorities of Democrats and independents say the tariffs Mr. Trump has imposed on Chinese goods — and the retaliatory tariffs that China has imposed on American products — will be bad for the United States, according to a survey this month for The New York Times by the online research platform SurveyMonkey.

Republicans still mostly support Mr. Trump’s trade policies, but there are cracks showing even there. A majority of Republicans said they expected tariffs to lead to higher prices for American consumers. Only among the president’s strongest supporters do a plurality believe his policies will bring back manufacturing jobs without raising prices, as Mr. Trump has claimed.

Over all, 53 percent of Americans say the China tariffs will be bad for the United States, compared with 43 percent who say the tariffs will be a good thing. Other surveys have found similar results.

If Mr. Trump is concerned by such results, he isn’t showing it. In an interview with Fox Business Network on Wednesday, he played down the importance of reaching a deal with China at this week’s Group of 20 summit in Osaka, Japan. “I’m very happy either way,” he said.

Jennifer Frandsen considers herself a political independent and has voted for candidates from both major parties. But she has little doubt that the trade war has hurt her personally. She recently lost her job in sales when Walmart cut back its contract with her employer, a move she attributes at least partly to the trade war. The retail giant said last month that it would raise some prices in response to the tariffs.

“We ultimately end up paying more because companies don’t eat that cost, they end up passing that cost on to the customer,” said Ms. Frandsen, a 50-year-old resident of Palm Bay, Fla.

More About Public Opinion and Trade
U.S. and China Angle for Trade Truce, but Both Insist the Other Will Back Down

June 27, 2019

Trump Is More Vulnerable to Democratic Attacks on Trade Than You Might Think

June 8, 2019

Divides Over Trade Scramble Midterm Election Messaging

April 17, 2018

It isn’t clear how much Mr. Trump’s trade policies will matter in next year’s election. Trade hasn’t historically been decisive in presidential races, and it ranks low among the issues that voters are focused on. It is also difficult for Democrats to capitalize on the issue because several of their leading presidential candidates, including Senators Elizabeth Warren and Bernie Sanders, are also skeptical about trade agreements. The issue barely came up at the first Democratic presidential debates on Wednesday and Thursday evenings.

“People don’t think about trade a lot,” said Carroll Doherty, director of political research for the Pew Research Center. “It’s a pretty low-priority issue.”

That could change, Mr. Doherty said, if the trade war starts to damage the broader American economy, costing more people like Ms. Frandsen their jobs. There isn’t much evidence of that so far — economic growth was solid in the first three months of the year, and the unemployment rate is at a nearly 50-year low. But growth has been slowing, and businesses are increasingly warning that tariffs are taking a toll.

“A lot of it depends on events and what happens over the next six months,” Mr. Doherty said.

There are signs that Americans are starting to pay more attention. More than two-thirds of those polled — and more than half of Republicans — said they believed that Mr. Trump’s trade policies would cause prices to rise. That is a break from past surveys, in which fewer people drew a link between tariffs and prices, said Alexandra Guisinger, a Temple University political scientist who wrote a book about public opinion on trade. She said the shift could reflect increased media coverage of trade and efforts by business groups and others to influence sentiment.

“That recognition that tariffs are something that consumers would pay is something that’s new,” Ms. Guisinger said.

Republicans by and large see those higher prices as worth the sacrifice. Seventy-five percent of Republicans say companies will bring jobs back to the United States as a result of Mr. Trump’s trade policies — economists are skeptical — and 83 percent say other countries often take unfair advantage of the United States.

David Markley, a moderate Republican in Alexandria, Va., said he believed economists when they said tariffs would raise prices, and he said the trade war would probably hurt the United States economy. But he said China had stolen American intellectual property and broken international trade rules, and he said some form of retaliation was overdue.

“Maybe they’re not good in the short term, but what are we going to do long term about what China’s doing to us?” Mr. Markley said. “Sometimes you have to take a short-term hit in order to make a long-term difference.”

Mr. Markley, a financial adviser, said he wasn’t sure whether the tariffs were the right response, but added, “Something needed to be done.”

Trade didn’t used to be a partisan issue. Before Mr. Trump made it central to his 2016 campaign, surveys showed little difference between Democrats and Republicans on trade policy. Now, as with many other issues, there is a big split.

But Ms. Guisinger said views on trade might not be as tightly locked into a partisan framework as some other issues. Longstanding Republicans are unlikely to break with the president, she said. But more recent converts, such as people who voted for former President Barack Obama and then backed Mr. Trump in 2016, might be more vulnerable, particularly if the economy weakens.

“Some of them were conservative Democrats who saw in Trump a promise of their jobs’ being saved,” she said. “That group we might see more likely to turn against the president if they decide these policies have not worked out.”

Jenny Powell grew up in a Republican household in Ohio but voted for Mr. Obama in 2012. She voted for Mr. Trump in 2016 because her family was struggling financially and she “thought that he would be a good businessman to take care of this country.”

But Ms. Powell, 56, said that things hadn’t improved since Mr. Trump took office, and that she didn’t like the way he talked about immigrants. The trade war isn’t a huge issue for her, she said, but she worries about rising prices, and she doesn’t understand Mr. Trump’s rationale for his policies.

“Is he doing it from a business perspective, or is he trying to punish?” she said. “I guess I just don’t understand the full meaning of the tariffs.”

Ms. Powell, who works in marketing for a travel company and now lives outside Atlanta, said she was open to voting for a Democrat next year.

“I put him there, so I can’t really complain,” she said. “It just feels like we’re on the verge of collapse.”


About the survey: The data in this article came from an online survey of 2,579 adults conducted by the polling firm SurveyMonkey from June 3 to June 9. The company selected respondents at random from the nearly three million people who take surveys on its platform each day. Responses were weighted to match the demographic profile of the population of the United States. The survey has a modeled error estimate (similar to a margin of error in a standard telephone poll) of plus or minus three percentage points, so differences of less than that amount are statistically insignificant.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Trump’s Case for China Tariffs Fails to Persuade

Westlake Legal Group 28survey-diptych2-facebookJumbo Trump’s Case for China Tariffs Fails to Persuade Voting and Voters United States Politics and Government United States Economy Trump, Donald J Prices (Fares, Fees and Rates) Presidential Election of 2020 Polls and Public Opinion International Trade and World Market Customs (Tariff) China

As President Trump weighs a possible resolution to his trade conflict with China, one factor may be pushing him toward a deal: His trade policies are broadly unpopular with American voters.

Large majorities of Democrats and independents say the tariffs Mr. Trump has imposed on Chinese goods — and the retaliatory tariffs that China has imposed on American products — will be bad for the United States, according to a survey this month for The New York Times by the online research platform SurveyMonkey.

Republicans still mostly support Mr. Trump’s trade policies, but there are cracks showing even there. A majority of Republicans said they expected tariffs to lead to higher prices for American consumers. Only among the president’s strongest supporters do a plurality believe his policies will bring back manufacturing jobs without raising prices, as Mr. Trump has claimed.

Over all, 53 percent of Americans say the China tariffs will be bad for the United States, compared with 43 percent who say the tariffs will be a good thing. Other surveys have found similar results.

If Mr. Trump is concerned by such results, he isn’t showing it. In an interview with Fox Business Network on Wednesday, he played down the importance of reaching a deal with China at this week’s Group of 20 summit in Osaka, Japan. “I’m very happy either way,” he said.

Jennifer Frandsen considers herself a political independent and has voted for candidates from both major parties. But she has little doubt that the trade war has hurt her personally. She recently lost her job in sales when Walmart cut back its contract with her employer, a move she attributes at least partly to the trade war. The retail giant said last month that it would raise some prices in response to the tariffs.

“We ultimately end up paying more because companies don’t eat that cost, they end up passing that cost on to the customer,” said Ms. Frandsen, a 50-year-old resident of Palm Bay, Fla.

More About Public Opinion and Trade
U.S. and China Angle for Trade Truce, but Both Insist the Other Will Back Down

June 27, 2019

Trump Is More Vulnerable to Democratic Attacks on Trade Than You Might Think

June 8, 2019

Divides Over Trade Scramble Midterm Election Messaging

April 17, 2018

It isn’t clear how much Mr. Trump’s trade policies will matter in next year’s election. Trade hasn’t historically been decisive in presidential races, and it ranks low among the issues that voters are focused on. It is also difficult for Democrats to capitalize on the issue because several of their leading presidential candidates, including Senators Elizabeth Warren and Bernie Sanders, are also skeptical about trade agreements. The issue barely came up at the first Democratic presidential debates on Wednesday and Thursday evenings.

“People don’t think about trade a lot,” said Carroll Doherty, director of political research for the Pew Research Center. “It’s a pretty low-priority issue.”

That could change, Mr. Doherty said, if the trade war starts to damage the broader American economy, costing more people like Ms. Frandsen their jobs. There isn’t much evidence of that so far — economic growth was solid in the first three months of the year, and the unemployment rate is at a nearly 50-year low. But growth has been slowing, and businesses are increasingly warning that tariffs are taking a toll.

“A lot of it depends on events and what happens over the next six months,” Mr. Doherty said.

There are signs that Americans are starting to pay more attention. More than two-thirds of those polled — and more than half of Republicans — said they believed that Mr. Trump’s trade policies would cause prices to rise. That is a break from past surveys, in which fewer people drew a link between tariffs and prices, said Alexandra Guisinger, a Temple University political scientist who wrote a book about public opinion on trade. She said the shift could reflect increased media coverage of trade and efforts by business groups and others to influence sentiment.

“That recognition that tariffs are something that consumers would pay is something that’s new,” Ms. Guisinger said.

Republicans by and large see those higher prices as worth the sacrifice. Seventy-five percent of Republicans say companies will bring jobs back to the United States as a result of Mr. Trump’s trade policies — economists are skeptical — and 83 percent say other countries often take unfair advantage of the United States.

David Markley, a moderate Republican in Alexandria, Va., said he believed economists when they said tariffs would raise prices, and he said the trade war would probably hurt the United States economy. But he said China had stolen American intellectual property and broken international trade rules, and he said some form of retaliation was overdue.

“Maybe they’re not good in the short term, but what are we going to do long term about what China’s doing to us?” Mr. Markley said. “Sometimes you have to take a short-term hit in order to make a long-term difference.”

Mr. Markley, a financial adviser, said he wasn’t sure whether the tariffs were the right response, but added, “Something needed to be done.”

Trade didn’t used to be a partisan issue. Before Mr. Trump made it central to his 2016 campaign, surveys showed little difference between Democrats and Republicans on trade policy. Now, as with many other issues, there is a big split.

But Ms. Guisinger said views on trade might not be as tightly locked into a partisan framework as some other issues. Longstanding Republicans are unlikely to break with the president, she said. But more recent converts, such as people who voted for former President Barack Obama and then backed Mr. Trump in 2016, might be more vulnerable, particularly if the economy weakens.

“Some of them were conservative Democrats who saw in Trump a promise of their jobs’ being saved,” she said. “That group we might see more likely to turn against the president if they decide these policies have not worked out.”

Jenny Powell grew up in a Republican household in Ohio but voted for Mr. Obama in 2012. She voted for Mr. Trump in 2016 because her family was struggling financially and she “thought that he would be a good businessman to take care of this country.”

But Ms. Powell, 56, said that things hadn’t improved since Mr. Trump took office, and that she didn’t like the way he talks about immigrants. The trade war isn’t a huge issue for her, she said, but she worries about rising prices, and she doesn’t understand Mr. Trump’s rationale for his policies.

“Is he doing it from a business perspective, or is he trying to punish?” she said “I guess I just don’t understand the full meaning of the tariffs.”

Ms. Powell, who works in marketing for a travel company and now lives outside Atlanta, said she was open to voting for a Democrat next year.

“I put him there, so I can’t really complain,” she said. “It just feels like we’re on the verge of collapse.”


About the survey: The data in this article came from an online survey of 2,579 adults conducted by the polling firm SurveyMonkey from June 3 to June 9. The company selected respondents at random from the nearly three million people who take surveys on its platform each day. Responses were weighted to match the demographic profile of the population of the United States. The survey has a modeled error estimate (similar to a margin of error in a standard telephone poll) of plus or minus three percentage points, so differences of less than that amount are statistically insignificant.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

As Trump and Xi Talk Trade, Huawei Will Loom Large

DONGGUAN, China — President Trump and China’s leader, Xi Jinping, are expected to try again to resolve their tariff war when they meet in Japan on Saturday.

First, they will need to figure out what to do about Huawei.

The Trump administration has squeezed the Chinese technology giant with nearly the full might of the United States government, choking off the firm’s access to vital American suppliers, barring it from the country’s telecom market and filing sweeping criminal charges against it.

Though Washington officials say those moves arose from national security concerns and are separate from the trade fight, few expect China to accept a deal to lift punishing tariffs that does not include relief for its biggest, most internationally successful tech firm.

“It is almost impossible for the Chinese to agree to almost anything while the Huawei action looms,” said Samm Sacks, a China expert at the think tank New America. “Even if this is walked back, the Chinese fundamentally mistrust this administration. At this point, there’s no walking back this mistrust.”

Beijing on Thursday again called on Washington to end its restrictions on Huawei, and Chinese officials have complained about the harm they said the administration’s moves against Chinese firms had done.

“We hope, in the spirit of free trade and the principles of W.T.O., that the U.S. will remove these inappropriate unilateral measures against Chinese companies,” said Wang Shouwen, China’s vice minister of commerce, referring to the World Trade Organization, earlier this week. “This is good for both sides.”

ImageWestlake Legal Group merlin_155802522_c06c69c1-921f-4d6c-9c90-9a77ce47d08f-articleLarge As Trump and Xi Talk Trade, Huawei Will Loom Large United States International Relations Trump, Donald J International Trade and World Market Huawei Technologies Co Ltd Embargoes and Sanctions Computers and the Internet China 5G (Wireless Communications)

Wang Shouwen, China’s vice minister of commerce, in Beijing early this month.CreditWu Hong/EPA, via Shutterstock

Washington’s blunt-force approach to stymieing China’s technological aspirations has split the business world, forcing tech firms on both sides of the Pacific to adapt at warp speed. Restricted from selling to Huawei, Silicon Valley is slashing revenue forecasts, although some firms have resumed certain sales that they do not believe are covered by Washington’s ban. American businesses of all kinds are bracing for retaliation from Beijing.

Huawei has swung into what employees call “war mode” to survive Washington’s fusillade. At the company’s campuses in the southern Chinese cities of Dongguan and Shenzhen, projects have been accelerated and working hours have ballooned, according to half a dozen Huawei workers who requested anonymity to discuss internal company matters.

Even the Coca-Cola that gives employees their midafternoon sugar kick now comes in cans custom-printed with pump-up messages. One can pairs the image of a raised fist with the words “In the frenzy of the fight, say no to vacation days.”

Mr. Trump has dangled the possibility of easing up on the company, saying last month that “it’s possible that Huawei even would be included in some kind of a trade deal.”

But any clemency for Huawei would face pushback in Washington. Hawkish officials and lawmakers see technology as an important front in a generational threat posed by China’s rise. And they see Huawei as the apex of all that is threatening about that rise.

Their message has been heard clearly in Beijing, even if Washington eventually dials back some of its restrictions on the company.

“The damage is certainly done, from Beijing’s perspective,” Ms. Sacks said. “I think we are in a new world now. And to the extent that there is some deal to be made, I don’t think it changes this new reality.”

Washington has gone after Huawei on multiple fronts in the past year. The Justice Department in January filed criminal charges against the company, related to alleged violations of sanctions against Iran. Huawei denies wrongdoing and says its products do not threaten any nation’s security — another allegation made by American officials, who say the company could spy on China’s behalf.

After trade talks went off the rails last month, the Commerce Department ordered what was once seen as the nuclear option against Huawei: No more parts and equipment could be purchased from American suppliers without special waivers.

The cafeteria at the Huawei Songshan Lake Campus in Dongguan, China.CreditHector Retamal/Agence France-Presse — Getty Images

In response, China’s Ministry of Commerce has threatened to make a list of “unreliable” companies and people who could be punished for disrupting Chinese supply chains. Chinese officials have echoed the threat in meetings with American tech companies. Beijing has also proposed new cybersecurity regulations that experts say could impair the operations of foreign companies in China.

Still, Arthur Kroeber, a founding partner at the research firm Gavekal, said China would hurt itself as much as it hurt the United States if it took more steps to disconnect itself from the global economy.

“China’s only hope of influencing U.S. policy in a more positive (from its standpoint) direction is to keep the business community as some kind of an ally,” Mr. Kroeber wrote in an email. “This limits its ability to target U.S. firms for retaliation.”

Huawei’s leaders do not seem to believe that China and the United States are heading for a permanent divorce.

At an event last week, the firm’s founder and chief executive, Ren Zhengfei, predicted that business would be tough for the next two years. But he said he hoped to resume working with American partners in the not-too-distant future.

Huawei’s founder, Ren Zhengfei, said last week that he hoped to be working with American partners again soon.CreditAly Song/Reuters

“We are not afraid of using American components,” Mr. Ren said. “We are not afraid of working with any American people.”

The company appears to understand that its fate is entwined with larger political discussions, which it can influence only indirectly. Huawei officials have avoided high-level contact with Washington ahead of this week’s Group of 20 meeting in Osaka, Japan, according to a person familiar with the company’s activities who was not authorized to speak with the press.

Huawei has spent only $55,000 this year on lobbying in Washington, according to data from the Center for Responsive Politics. By comparison, ZTE, the Chinese hardware maker that the Trump administration nearly drove out of business last year, has spent nearly $1.4 million.

ZTE’s near-death experience drove Huawei to begin planning for similar contingencies. The company says, for instance, that it has been developing its own operating system to replace Google’s Android in Huawei handsets.

Such efforts have been redoubled in the past month. Huawei employees are being plied with round-the-clock meals and snacks. Buses and cars ferry workers home after days that routinely end, in many departments, after 11 p.m. or midnight.

Office walls have been adorned with motivational slogans. “We are in the first battle, victory is ours,” one goes. Another says, “The ace forces are dispatched, the mission must be completed.”

China’s government has helped to keep Huawei afloat. The company had been poised to become a major provider of equipment for 5G, the next generation of mobile internet. That is why some industry observers believe Washington’s restrictions on Huawei will delay the construction of 5G networks in China and around the world.

But a few weeks ago, China began issuing commercial 5G licenses to mobile carriers, ahead of the schedule that many observers had expected. Analysts at J.P. Morgan called the move an attempt “by the government to assure the world about China’s capability to push forward 5G.” China’s state-run telecom operators have also signed agreements to buy 5G gear from Huawei.

“They can survive,” Xiaomeng Lu of Access Partnership, a policy consulting firm, said of Huawei. The company will just have to stand more firmly on China’s side of the increasingly “splintered” world of tech, Ms. Lu said. “The U.S. only picks suppliers they trust, and China will pick suppliers they trust.”

Huawei’s leaders have long cultivated an aggressive “wolf culture” at the firm, one that celebrates individual dedication and team conquest. Recently, even mundane, administrative posts on the company’s social media pages have been studded with wartime language.

One post on the messaging app WeChat announced that cafeteria hours had been extended at Huawei’s campuses in Dongguan. It ended by pledging the company’s support to its employees:

The battle has begun,
As the bugle sounds the charge,
We will go forth hand in hand
To escort the warriors!

Paul Mozur contributed reporting from Shanghai. Carolyn Zhang and Luz Ding contributed research.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

As Trump and Xi Talk Trade, Huawei Will Loom Large

DONGGUAN, China — President Trump and China’s leader, Xi Jinping, are expected to try again to resolve their tariff war when they meet in Japan on Saturday.

First, they will need to figure out what to do about Huawei.

The Trump administration has squeezed the Chinese technology giant with nearly the full might of the United States government, choking off the firm’s access to vital American suppliers, barring it from the country’s telecom market and filing sweeping criminal charges against it.

Though Washington officials say those moves arose from national security concerns and are separate from the trade fight, few expect China to accept a deal to lift punishing tariffs that does not include relief for its biggest, most internationally successful tech firm.

“It is almost impossible for the Chinese to agree to almost anything while the Huawei action looms,” said Samm Sacks, a China expert at the think tank New America. “Even if this is walked back, the Chinese fundamentally mistrust this administration. At this point, there’s no walking back this mistrust.”

Beijing on Thursday again called on Washington to end its restrictions on Huawei, and Chinese officials have complained about the harm they said the administration’s moves against Chinese firms had done.

“We hope, in the spirit of free trade and the principles of W.T.O., that the U.S. will remove these inappropriate unilateral measures against Chinese companies,” said Wang Shouwen, China’s vice minister of commerce, referring to the World Trade Organization, earlier this week. “This is good for both sides.”

ImageWestlake Legal Group merlin_155802522_c06c69c1-921f-4d6c-9c90-9a77ce47d08f-articleLarge As Trump and Xi Talk Trade, Huawei Will Loom Large United States International Relations Trump, Donald J International Trade and World Market Huawei Technologies Co Ltd Embargoes and Sanctions Computers and the Internet China 5G (Wireless Communications)

Wang Shouwen, China’s vice minister of commerce, in Beijing early this month.CreditWu Hong/EPA, via Shutterstock

Washington’s blunt-force approach to stymieing China’s technological aspirations has split the business world, forcing tech firms on both sides of the Pacific to adapt at warp speed. Restricted from selling to Huawei, Silicon Valley is slashing revenue forecasts, although some firms have resumed certain sales that they do not believe are covered by Washington’s ban. American businesses of all kinds are bracing for retaliation from Beijing.

Huawei has swung into what employees call “war mode” to survive Washington’s fusillade. At the company’s campuses in the southern Chinese cities of Dongguan and Shenzhen, projects have been accelerated and working hours have ballooned, according to half a dozen Huawei workers who requested anonymity to discuss internal company matters.

Even the Coca-Cola that gives employees their midafternoon sugar kick now comes in cans custom-printed with pump-up messages. One can pairs the image of a raised fist with the words “In the frenzy of the fight, say no to vacation days.”

Mr. Trump has dangled the possibility of easing up on the company, saying last month that “it’s possible that Huawei even would be included in some kind of a trade deal.”

But any clemency for Huawei would face pushback in Washington. Hawkish officials and lawmakers see technology as an important front in a generational threat posed by China’s rise. And they see Huawei as the apex of all that is threatening about that rise.

Their message has been heard clearly in Beijing, even if Washington eventually dials back some of its restrictions on the company.

“The damage is certainly done, from Beijing’s perspective,” Ms. Sacks said. “I think we are in a new world now. And to the extent that there is some deal to be made, I don’t think it changes this new reality.”

Washington has gone after Huawei on multiple fronts in the past year. The Justice Department in January filed criminal charges against the company, related to alleged violations of sanctions against Iran. Huawei denies wrongdoing and says its products do not threaten any nation’s security — another allegation made by American officials, who say the company could spy on China’s behalf.

After trade talks went off the rails last month, the Commerce Department ordered what was once seen as the nuclear option against Huawei: No more parts and equipment could be purchased from American suppliers without special waivers.

The cafeteria at the Huawei Songshan Lake Campus in Dongguan, China.CreditHector Retamal/Agence France-Presse — Getty Images

In response, China’s Ministry of Commerce has threatened to make a list of “unreliable” companies and people who could be punished for disrupting Chinese supply chains. Chinese officials have echoed the threat in meetings with American tech companies. Beijing has also proposed new cybersecurity regulations that experts say could impair the operations of foreign companies in China.

Still, Arthur Kroeber, a founding partner at the research firm Gavekal, said China would hurt itself as much as it hurt the United States if it took more steps to disconnect itself from the global economy.

“China’s only hope of influencing U.S. policy in a more positive (from its standpoint) direction is to keep the business community as some kind of an ally,” Mr. Kroeber wrote in an email. “This limits its ability to target U.S. firms for retaliation.”

Huawei’s leaders do not seem to believe that China and the United States are heading for a permanent divorce.

At an event last week, the firm’s founder and chief executive, Ren Zhengfei, predicted that business would be tough for the next two years. But he said he hoped to resume working with American partners in the not-too-distant future.

Huawei’s founder, Ren Zhengfei, said last week that he hoped to be working with American partners again soon.CreditAly Song/Reuters

“We are not afraid of using American components,” Mr. Ren said. “We are not afraid of working with any American people.”

The company appears to understand that its fate is entwined with larger political discussions, which it can influence only indirectly. Huawei officials have avoided high-level contact with Washington ahead of this week’s Group of 20 meeting in Osaka, Japan, according to a person familiar with the company’s activities who was not authorized to speak with the press.

Huawei has spent only $55,000 this year on lobbying in Washington, according to data from the Center for Responsive Politics. By comparison, ZTE, the Chinese hardware maker that the Trump administration nearly drove out of business last year, has spent nearly $1.4 million.

ZTE’s near-death experience drove Huawei to begin planning for similar contingencies. The company says, for instance, that it has been developing its own operating system to replace Google’s Android in Huawei handsets.

Such efforts have been redoubled in the past month. Huawei employees are being plied with round-the-clock meals and snacks. Buses and cars ferry workers home after days that routinely end, in many departments, after 11 p.m. or midnight.

Office walls have been adorned with motivational slogans. “We are in the first battle, victory is ours,” one goes. Another says, “The ace forces are dispatched, the mission must be completed.”

China’s government has helped to keep Huawei afloat. The company had been poised to become a major provider of equipment for 5G, the next generation of mobile internet. That is why some industry observers believe Washington’s restrictions on Huawei will delay the construction of 5G networks in China and around the world.

But a few weeks ago, China began issuing commercial 5G licenses to mobile carriers, ahead of the schedule that many observers had expected. Analysts at J.P. Morgan called the move an attempt “by the government to assure the world about China’s capability to push forward 5G.” China’s state-run telecom operators have also signed agreements to buy 5G gear from Huawei.

“They can survive,” Xiaomeng Lu of Access Partnership, a policy consulting firm, said of Huawei. The company will just have to stand more firmly on China’s side of the increasingly “splintered” world of tech, Ms. Lu said. “The U.S. only picks suppliers they trust, and China will pick suppliers they trust.”

Huawei’s leaders have long cultivated an aggressive “wolf culture” at the firm, one that celebrates individual dedication and team conquest. Recently, even mundane, administrative posts on the company’s social media pages have been studded with wartime language.

One post on the messaging app WeChat announced that cafeteria hours had been extended at Huawei’s campuses in Dongguan. It ended by pledging the company’s support to its employees:

The battle has begun,
As the bugle sounds the charge,
We will go forth hand in hand
To escort the warriors!

Paul Mozur contributed reporting from Shanghai. Carolyn Zhang and Luz Ding contributed research.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

As Trump and Xi Talk Trade, Huawei Will Loom Large

DONGGUAN, China — President Trump and China’s leader, Xi Jinping, are expected to try again to resolve their tariff war when they meet in Japan on Saturday.

First, they will need to figure out what to do about Huawei.

The Trump administration has squeezed the Chinese technology giant with nearly the full might of the United States government, choking off the firm’s access to vital American suppliers, barring it from the country’s telecom market and filing sweeping criminal charges against it.

Though Washington officials say those moves arose from national security concerns and are separate from the trade fight, few expect China to accept a deal to lift punishing tariffs that does not include relief for its biggest, most internationally successful tech firm.

“It is almost impossible for the Chinese to agree to almost anything while the Huawei action looms,” said Samm Sacks, a China expert at the think tank New America. “Even if this is walked back, the Chinese fundamentally mistrust this administration. At this point, there’s no walking back this mistrust.”

Beijing on Thursday again called on Washington to end its restrictions on Huawei, and Chinese officials have complained about the harm they said the administration’s moves against Chinese firms had done.

“We hope, in the spirit of free trade and the principles of W.T.O., that the U.S. will remove these inappropriate unilateral measures against Chinese companies,” said Wang Shouwen, China’s vice minister of commerce, referring to the World Trade Organization, earlier this week. “This is good for both sides.”

ImageWestlake Legal Group merlin_155802522_c06c69c1-921f-4d6c-9c90-9a77ce47d08f-articleLarge As Trump and Xi Talk Trade, Huawei Will Loom Large United States International Relations Trump, Donald J International Trade and World Market Huawei Technologies Co Ltd Embargoes and Sanctions Computers and the Internet China 5G (Wireless Communications)

Wang Shouwen, China’s vice minister of commerce, in Beijing early this month.CreditWu Hong/EPA, via Shutterstock

Washington’s blunt-force approach to stymieing China’s technological aspirations has split the business world, forcing tech firms on both sides of the Pacific to adapt at warp speed. Restricted from selling to Huawei, Silicon Valley is slashing revenue forecasts, although some firms have resumed certain sales that they do not believe are covered by Washington’s ban. American businesses of all kinds are bracing for retaliation from Beijing.

Huawei has swung into what employees call “war mode” to survive Washington’s fusillade. At the company’s campuses in the southern Chinese cities of Dongguan and Shenzhen, projects have been accelerated and working hours have ballooned, according to half a dozen Huawei workers who requested anonymity to discuss internal company matters.

Even the Coca-Cola that gives employees their midafternoon sugar kick now comes in cans custom-printed with pump-up messages. One can pairs the image of a raised fist with the words “In the frenzy of the fight, say no to vacation days.”

Mr. Trump has dangled the possibility of easing up on the company, saying last month that “it’s possible that Huawei even would be included in some kind of a trade deal.”

But any clemency for Huawei would face pushback in Washington. Hawkish officials and lawmakers see technology as an important front in a generational threat posed by China’s rise. And they see Huawei as the apex of all that is threatening about that rise.

Their message has been heard clearly in Beijing, even if Washington eventually dials back some of its restrictions on the company.

“The damage is certainly done, from Beijing’s perspective,” Ms. Sacks said. “I think we are in a new world now. And to the extent that there is some deal to be made, I don’t think it changes this new reality.”

Washington has gone after Huawei on multiple fronts in the past year. The Justice Department in January filed criminal charges against the company, related to alleged violations of sanctions against Iran. Huawei denies wrongdoing and says its products do not threaten any nation’s security — another allegation made by American officials, who say the company could spy on China’s behalf.

After trade talks went off the rails last month, the Commerce Department ordered what was once seen as the nuclear option against Huawei: No more parts and equipment could be purchased from American suppliers without special waivers.

The cafeteria at the Huawei Songshan Lake Campus in Dongguan, China.CreditHector Retamal/Agence France-Presse — Getty Images

In response, China’s Ministry of Commerce has threatened to make a list of “unreliable” companies and people who could be punished for disrupting Chinese supply chains. Chinese officials have echoed the threat in meetings with American tech companies. Beijing has also proposed new cybersecurity regulations that experts say could impair the operations of foreign companies in China.

Still, Arthur Kroeber, a founding partner at the research firm Gavekal, said China would hurt itself as much as it hurt the United States if it took more steps to disconnect itself from the global economy.

“China’s only hope of influencing U.S. policy in a more positive (from its standpoint) direction is to keep the business community as some kind of an ally,” Mr. Kroeber wrote in an email. “This limits its ability to target U.S. firms for retaliation.”

Huawei’s leaders do not seem to believe that China and the United States are heading for a permanent divorce.

At an event last week, the firm’s founder and chief executive, Ren Zhengfei, predicted that business would be tough for the next two years. But he said he hoped to resume working with American partners in the not-too-distant future.

Huawei’s founder, Ren Zhengfei, said last week that he hoped to be working with American partners again soon.CreditAly Song/Reuters

“We are not afraid of using American components,” Mr. Ren said. “We are not afraid of working with any American people.”

The company appears to understand that its fate is entwined with larger political discussions, which it can influence only indirectly. Huawei officials have avoided high-level contact with Washington ahead of this week’s Group of 20 meeting in Osaka, Japan, according to a person familiar with the company’s activities who was not authorized to speak with the press.

Huawei has spent only $55,000 this year on lobbying in Washington, according to data from the Center for Responsive Politics. By comparison, ZTE, the Chinese hardware maker that the Trump administration nearly drove out of business last year, has spent nearly $1.4 million.

ZTE’s near-death experience drove Huawei to begin planning for similar contingencies. The company says, for instance, that it has been developing its own operating system to replace Google’s Android in Huawei handsets.

Such efforts have been redoubled in the past month. Huawei employees are being plied with round-the-clock meals and snacks. Buses and cars ferry workers home after days that routinely end, in many departments, after 11 p.m. or midnight.

Office walls have been adorned with motivational slogans. “We are in the first battle, victory is ours,” one goes. Another says, “The ace forces are dispatched, the mission must be completed.”

China’s government has helped to keep Huawei afloat. The company had been poised to become a major provider of equipment for 5G, the next generation of mobile internet. That is why some industry observers believe Washington’s restrictions on Huawei will delay the construction of 5G networks in China and around the world.

But a few weeks ago, China began issuing commercial 5G licenses to mobile carriers, ahead of the schedule that many observers had expected. Analysts at J.P. Morgan called the move an attempt “by the government to assure the world about China’s capability to push forward 5G.” China’s state-run telecom operators have also signed agreements to buy 5G gear from Huawei.

“They can survive,” Xiaomeng Lu of Access Partnership, a policy consulting firm, said of Huawei. The company will just have to stand more firmly on China’s side of the increasingly “splintered” world of tech, Ms. Lu said. “The U.S. only picks suppliers they trust, and China will pick suppliers they trust.”

Huawei’s leaders have long cultivated an aggressive “wolf culture” at the firm, one that celebrates individual dedication and team conquest. Recently, even mundane, administrative posts on the company’s social media pages have been studded with wartime language.

One post on the messaging app WeChat announced that cafeteria hours had been extended at Huawei’s campuses in Dongguan. It ended by pledging the company’s support to its employees:

The battle has begun,
As the bugle sounds the charge,
We will go forth hand in hand
To escort the warriors!

Paul Mozur contributed reporting from Shanghai. Carolyn Zhang and Luz Ding contributed research.

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U.S. and China Angle for Trade Truce, but Both Insist the Other Will Back Down

WASHINGTON — The fate of a yearlong trade war will reach a pivotal moment this weekend as President Trump and President Xi Jinping of China meet in Japan. But while both leaders appear open to a truce, they have hardened their positions ahead of the talks, leaving it unclear how the United States and China will resolve the tensions that have thrust the world’s two largest economies into conflict.

Both leaders have an incentive to avoid a further escalation of a trade war that has battered companies and consumers on both sides of the Pacific. The global economy is weakening as a result of the trade war, with China and America feeling the effects, putting Mr. Trump’s re-election and Mr. Xi’s popularity at risk. But neither leader wants to be seen as capitulating or agreeing to concessions that could give them less leverage once trade talks resume.

“There are still big substantive issues to resolve,” said Derek Scissors, a China expert at the American Enterprise Institute. “I don’t know how you make a deal in the next year and a half that changes the direction of the U.S.-China relationship.”

The United States and China appeared to be on the cusp of a trade agreement in April, only to have negotiations collapse in early May after the Chinese government rejected some of the Trump administration’s demands. Tensions have only escalated since, with both sides ratcheting up tit-for-tat punishment, creating even more issues to resolve.

Mr. Trump raised tariffs on $250 billion worth of Chinese products and has moved forward with preparations to tax another $300 billion worth of Chinese goods. The United States has tried to cut off the telecom firm Huawei and other Chinese companies from buying American technological components over national security concerns, hamstringing prominent businesses.

In return, China has put its own higher tariffs in place on goods from the United States and threatened to draw up a blacklist of American companies that it views as “unreliable.”

The Trump administration says China must agree to a previous version of the pact, which would legally enshrine protections for intellectual property and require hundreds of billions of dollars of American products to be purchased every year.

Beijing has insisted that the deal must include lifting the tough American sanctions on Huawei, along with removing all of Mr. Trump’s tariffs and dropping any plans to impose more.

“The U.S. side threatens to implement additional tariffs on China, but it can’t scare the Chinese people at all,” Geng Shuang, the Foreign Ministry spokesman, said at a news briefing on Thursday in Beijing.

Even if Mr. Trump and Mr. Xi are able to strike a temporary cease-fire that would continue negotiations and forestall more tariffs, the meeting seems unlikely to produce the kind of transformative deal that Mr. Trump once promised.

ImageWestlake Legal Group 27DC-TRADE-01-articleLarge U.S. and China Angle for Trade Truce, but Both Insist the Other Will Back Down Xi Jinping United States Politics and Government United States Economy Trump, Donald J Presidential Election of 2020 International Trade and World Market Customs (Tariff) China

President Trump and President Xi Jinping of China in 2017 in Beijing. They will meet at the Group of 20 summit on Saturday in Osaka, Japan.CreditDoug Mills/The New York Times

China has balked at many of the Trump administration’s requests, including changing its laws surrounding intellectual property and the treatment of data, and curtailing state subsidies to its firms. It has also made little headway in its demands that the Trump administration remove all of its tariffs. On Huawei, Mr. Trump has sent mixed messages, describing the company as a national security threat but also saying that its fate could be determined as part of a trade deal.

The president’s top advisers are also divided, according to people familiar with the deliberations. Officials on the National Security Council, along with officials at the defense and intelligence agencies and Peter Navarro, a top trade adviser, have insisted that Huawei’s punishment not be softened. But economic advisers — including Steven Mnuchin, Jared Kushner, Larry Kudlow and even Robert Lighthizer, the top trade negotiator — say they are wary of the threat from Huawei but believe that some concessions could be made in return for progress on the trade front.

The window for a substantive discussion may be brief. Mr. Xi and Mr. Trump are scheduled to have only a Saturday morning meeting in Osaka, Japan, and not the lengthy dinner they had at the previous Group of 20 summit, last December in Buenos Aires.

At that dinner, Mr. Xi and Mr. Trump reached a narrow, temporary truce in which China agreed to resume buying American soybeans and the United States delayed plans to increase tariffs to 25 percent from 10 percent on $200 billion worth of goods.

Similar threats of escalation — to move ahead with tariffs on a further $300 billion worth of Chinese goods — hang over the meeting in Osaka. In an interview on Wednesday, Mr. Trump said that he would welcome a deal with the Chinese, but that he was ready to proceed with more tariffs if negotiations between the countries did not progress. But he softened the threat by saying he might charge a tax of 10 percent on those goods, rather than 25 percent.

“It’s possible we’re going to make a deal, but I’m also very happy where we are now,” the president said.

Mr. Trump also played down the economic toll his trade war is having on the United States and said China is eager to compromise.

“They want to make a deal more than I do,” he said. “The Chinese economy’s going down the tubes.”

Some of the president’s advisers have warned about the risk of a prolonged trade conflict and have tried to smooth the path to better relations in China in recent weeks.

A speech by Vice President Mike Pence that would have criticized China’s human rights record was twice postponed this month, and the administration has paused an effort to blacklist Chinese companies that are involved in the surveillance and detention of a Chinese Muslim minority.

Some Trump administration officials have floated the idea of a six-month timeline to reach an agreement after the talks, though no consensus has been reached, according to one person familiar with the discussions.

China, too, has tried to increase its leverage. Mr. Xi announced a sudden visit to North Korea last week. Analysts said he could be trying to revive Mr. Trump’s disarmament deal with the North in the hopes of delivering a plan for the next phase of the nuclear negotiations to Mr. Trump when they meet in Osaka.

Mr. Xi arriving Thursday in Japan.CreditKazuhiro Nogi/Agence France-Presse — Getty Images

Despite the tough statements, there is strong incentive in both countries to get talks back on track. In China, tariffs have piled on to the damaging effects of a sharp but temporary credit crunch last year, further weakening consumer confidence and growth in industrial production. Chinese consumers are seeing spiraling prices for products like pork and fruit. In the United States, the Federal Reserve has cited uncertainty surrounding trade policy as a threat to the economic expansion and a reason it may cut interest rates.

Many American manufacturers and retailers have been critical of the effect of the tariffs. In seven days of hearings that concluded on Tuesday, businesses including toymakers, book publishers and purveyors of fireworks testified that the tariffs would raise their costs and damage the health of their businesses.

American farmers, a key source of support for the president in the 2020 election, have also been hit hard by Chinese retaliation. Farmers are “one of the casualties” of the trade war, Sonny Perdue, the agriculture secretary, told CNN in an interview on Tuesday. “I think a deal can be made, and it may be done quickly,” he said.

Mr. Trump now faces a dilemma of whether it will be better politically to remain tough on China and risk further damage to the American economy from the trade war or whether he should settle for a partial deal that could expose him to criticism of being weak on China.

There is a strong belief in China — both inside and outside the government — that Mr. Trump needs a deal more than Mr. Xi, given the 2020 election.

Andy Mok, a trade specialist at the Center for China and Globalization, a Beijing research group that supports government policies, said there was “a hope” in China “that the U.S. will show some flexibility.”

“I think Trump is looking for a win to strengthen his chances in the election, but the trade war is also being understood by more sectors of the United States public,” Mr. Mok said.

On Wednesday, in the first 2020 Democratic presidential primary debate, four of the 10 candidates onstage named China as the greatest geopolitical threat.

“President Trump needs to look strong,” Joel Trachtman, a professor of international law at Tufts University’s Fletcher School of Law and Diplomacy.

But removing tariffs that have harmed businesses and slowed the economy could also reduce the risk of a recession coming before the presidential election, he added.

“Which force is stronger — the political forces versus the economic forces?” Mr. Trachtman asked. “It’s hard to say.”

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U.S. and China Angle for Trade Truce, but Both Insist the Other Will Back Down

WASHINGTON — The fate of a yearlong trade war will reach a pivotal moment this weekend as President Trump and President Xi Jinping of China meet in Japan. But while both leaders appear open to a truce, they have hardened their positions ahead of the talks, leaving it unclear how the United States and China will resolve the tensions that have thrust the world’s two largest economies into conflict.

Both leaders have an incentive to avoid a further escalation of a trade war that has battered companies and consumers on both sides of the Pacific. The global economy is weakening as a result of the trade war, with China and America feeling the effects, putting Mr. Trump’s re-election and Mr. Xi’s popularity at risk. But neither leader wants to be seen as capitulating or agreeing to concessions that could give them less leverage once trade talks resume.

“There are still big substantive issues to resolve,” said Derek Scissors, a China expert at the American Enterprise Institute. “I don’t know how you make a deal in the next year and a half that changes the direction of the U.S.-China relationship.”

The United States and China appeared to be on the cusp of a trade agreement in April, only to have negotiations collapse in early May after the Chinese government rejected some of the Trump administration’s demands. Tensions have only escalated since, with both sides ratcheting up tit-for-tat punishment, creating even more issues to resolve.

Mr. Trump raised tariffs on $250 billion worth of Chinese products and has moved forward with preparations to tax another $300 billion worth of Chinese goods. The United States has tried to cut off the telecom firm Huawei and other Chinese companies from buying American technological components over national security concerns, hamstringing prominent businesses.

In return, China has put its own higher tariffs in place on goods from the United States and threatened to draw up a blacklist of American companies that it views as “unreliable.”

The Trump administration says China must agree to a previous version of the pact, which would legally enshrine protections for intellectual property and require hundreds of billions of dollars of American products to be purchased every year.

Beijing has insisted that the deal must include lifting the tough American sanctions on Huawei, along with removing all of Mr. Trump’s tariffs and dropping any plans to impose more.

“The U.S. side threatens to implement additional tariffs on China, but it can’t scare the Chinese people at all,” Geng Shuang, the Foreign Ministry spokesman, said at a news briefing on Thursday in Beijing.

Even if Mr. Trump and Mr. Xi are able to strike a temporary cease-fire that would continue negotiations and forestall more tariffs, the meeting seems unlikely to produce the kind of transformative deal that Mr. Trump once promised.

ImageWestlake Legal Group 27DC-TRADE-01-articleLarge U.S. and China Angle for Trade Truce, but Both Insist the Other Will Back Down Xi Jinping United States Politics and Government United States Economy Trump, Donald J Presidential Election of 2020 International Trade and World Market Customs (Tariff) China

President Trump and President Xi Jinping of China in 2017 in Beijing. They will meet at the Group of 20 summit on Saturday in Osaka, Japan.CreditDoug Mills/The New York Times

China has balked at many of the Trump administration’s requests, including changing its laws surrounding intellectual property and the treatment of data, and curtailing state subsidies to its firms. It has also made little headway in its demands that the Trump administration remove all of its tariffs. On Huawei, Mr. Trump has sent mixed messages, describing the company as a national security threat but also saying that its fate could be determined as part of a trade deal.

The president’s top advisers are also divided, according to people familiar with the deliberations. Officials on the National Security Council, along with officials at the defense and intelligence agencies and Peter Navarro, a top trade adviser, have insisted that Huawei’s punishment not be softened. But economic advisers — including Steven Mnuchin, Jared Kushner, Larry Kudlow and even Robert Lighthizer, the top trade negotiator — say they are wary of the threat from Huawei but believe that some concessions could be made in return for progress on the trade front.

The window for a substantive discussion may be brief. Mr. Xi and Mr. Trump are scheduled to have only a Saturday morning meeting in Osaka, Japan, and not the lengthy dinner they had at the previous Group of 20 summit, last December in Buenos Aires.

At that dinner, Mr. Xi and Mr. Trump reached a narrow, temporary truce in which China agreed to resume buying American soybeans and the United States delayed plans to increase tariffs to 25 percent from 10 percent on $200 billion worth of goods.

Similar threats of escalation — to move ahead with tariffs on a further $300 billion worth of Chinese goods — hang over the meeting in Osaka. In an interview on Wednesday, Mr. Trump said that he would welcome a deal with the Chinese, but that he was ready to proceed with more tariffs if negotiations between the countries did not progress. But he softened the threat by saying he might charge a tax of 10 percent on those goods, rather than 25 percent.

“It’s possible we’re going to make a deal, but I’m also very happy where we are now,” the president said.

Mr. Trump also played down the economic toll his trade war is having on the United States and said China is eager to compromise.

“They want to make a deal more than I do,” he said. “The Chinese economy’s going down the tubes.”

Some of the president’s advisers have warned about the risk of a prolonged trade conflict and have tried to smooth the path to better relations in China in recent weeks.

A speech by Vice President Mike Pence that would have criticized China’s human rights record was twice postponed this month, and the administration has paused an effort to blacklist Chinese companies that are involved in the surveillance and detention of a Chinese Muslim minority.

Some Trump administration officials have floated the idea of a six-month timeline to reach an agreement after the talks, though no consensus has been reached, according to one person familiar with the discussions.

China, too, has tried to increase its leverage. Mr. Xi announced a sudden visit to North Korea last week. Analysts said he could be trying to revive Mr. Trump’s disarmament deal with the North in the hopes of delivering a plan for the next phase of the nuclear negotiations to Mr. Trump when they meet in Osaka.

Mr. Xi arriving Thursday in Japan.CreditKazuhiro Nogi/Agence France-Presse — Getty Images

Despite the tough statements, there is strong incentive in both countries to get talks back on track. In China, tariffs have piled on to the damaging effects of a sharp but temporary credit crunch last year, further weakening consumer confidence and growth in industrial production. Chinese consumers are seeing spiraling prices for products like pork and fruit. In the United States, the Federal Reserve has cited uncertainty surrounding trade policy as a threat to the economic expansion and a reason it may cut interest rates.

Many American manufacturers and retailers have been critical of the effect of the tariffs. In seven days of hearings that concluded on Tuesday, businesses including toymakers, book publishers and purveyors of fireworks testified that the tariffs would raise their costs and damage the health of their businesses.

American farmers, a key source of support for the president in the 2020 election, have also been hit hard by Chinese retaliation. Farmers are “one of the casualties” of the trade war, Sonny Perdue, the agriculture secretary, told CNN in an interview on Tuesday. “I think a deal can be made, and it may be done quickly,” he said.

Mr. Trump now faces a dilemma of whether it will be better politically to remain tough on China and risk further damage to the American economy from the trade war or whether he should settle for a partial deal that could expose him to criticism of being weak on China.

There is a strong belief in China — both inside and outside the government — that Mr. Trump needs a deal more than Mr. Xi, given the 2020 election.

Andy Mok, a trade specialist at the Center for China and Globalization, a Beijing research group that supports government policies, said there was “a hope” in China “that the U.S. will show some flexibility.”

“I think Trump is looking for a win to strengthen his chances in the election, but the trade war is also being understood by more sectors of the United States public,” Mr. Mok said.

On Wednesday, in the first 2020 Democratic presidential primary debate, four of the 10 candidates onstage named China as the greatest geopolitical threat.

“President Trump needs to look strong,” Joel Trachtman, a professor of international law at Tufts University’s Fletcher School of Law and Diplomacy.

But removing tariffs that have harmed businesses and slowed the economy could also reduce the risk of a recession coming before the presidential election, he added.

“Which force is stronger — the political forces versus the economic forces?” Mr. Trachtman asked. “It’s hard to say.”

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

We Shouldn’t Be Doing Business with Communist China

We didn’t win the (first) Cold War with Communist Russia – by handing them trillions of dollars.

Embargoes and Sanctions – Cold War Sanctions:

“In 1948, the United States began a campaign of economic sanctions against the Soviet Union that would last more than fifty years….

“For many years, the embargo on the Soviet Union was quite severe….

“(R)estrictions were tightened again after the Soviet invasion of Afghanistan in December 1979. In 1983, Ronald Reagan approved the National Security Decision Directive 75, which set the policy of using economic pressure to limit the foreign policy and military options of the Soviets.”

In 1991, Communist Russia collapsed in an economically-ravaged heap.

And as important: Communist Russia spent the preceding half century limping around far less effectively – because we were denying them trillions of dollars of operating capital.

Contrast this – with how we’ve dealt with Communist China.

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President Nixon Aimed to Establish a New Strategic Framework Built on Peaceful Relations with Beijing

And “peaceful relations” – meant trade.

Which meant in the name of fake “free trade” – we would ignore all sorts of Communist China’s abuses of us and the global market.

We were suddenly quite happy to abuse Chinese prisoners – put to slave labor by the regime to make cheap stuff for us to buy.

Exposed: Slave Labor and Torture in Communist China

Human rights?  Forget about it – I’m saving twenty dollars on this TV.

American workers won’t work for one (small) bowl of rice a day – so Amercian companies have spent the last half century-plus becoming de facto Chinese companies.  To avail themselves of Communist China’s slave labor.  Thereby handing Communist China trillions of dollars to which they never otherwise would have had access.

This isn’t even remotely close to free trade.

But that’s not all.  Communist China doesn’t just trade – Communist China steals and cheats.

China has spent the last five decades stealing trillions of dollars of our companies’ Intellectual Property (IP).   And in the name of fake “free trade” – our government has done nothing to defend our companies from this inconceivably huge heist.

This isn’t even remotely close to free trade.

China cheats – by floating its currency:

‘Dirty Float’: How China Manages its Currency:

“(I)t is controlled through central bank’s buying and selling currencies in a bid to cap its appreciation….

“Market analysts widely suggest that the yuan is held at a substantially undervalued level to make its exports more globally competitive.”

Which means China’s slave labor exports – are artificially rendered even cheaper on the global market.  Which is, again, titanically unfair to American companies manufacturing in America.  Further driving them to leave America and become de facto Chinese companies.  Thereby handing Communist China trillions of dollars to which they never otherwise would have had access.

This isn’t even remotely close to free trade.

But that’s not all.  To further rig the global market in their favor – Communist China subsidizes their slave labor exports.  Which artificially renders them even cheaper on the global market.  Which is, again, titanically unfair to American companies manufacturing in America.  Further driving them to leave America and become de facto Chinese Companies.  Thereby handing Communist China trillions of dollars to which they never otherwise would have had access.

This isn’t even remotely close to free trade.

And Communist China is doing all of this – not just to take from us trillions of dollars.  Communist China is doing this – to build up the ability to impose its Communist domination and will on the entirety of the planet.

Made in China 2025: The Industrial Plan that China Doesn’t Want Anyone Talking About

China’s Master Plan: A Global Military Threat

China Is a Geopolitical Threat

5G: China’s Dream to Dominate World Technology

Oh – remember Communist Russia political prisoner Aleksandr Solzhenitsyn?

China Is ‘Threat to World’ Says Dissident Writer

Of course China also wants to dominate the United States.

China’s Plan To Dominate The World & Crush The United States

China and the United States Fight for Global Dominance

China Increasingly Challenges American Dominance of Science

And China is worming its way directly into the US.

China Infiltrating U.S. Education System in Propaganda Coup:

“From kindergarten to college, Chinese government programs indoctrinate youth.”

Controversy Surrounds (China’s) Confucius Institutes at American Universities

But hey – at least the slave labor textbooks are cheap.

We shouldn’t be importing government manipulation from anyone.  We absolutely shouldn’t be doing so from Communist China.

And as with all things trade – this isn’t just about fake “free trade.”  This is also egregiously stupid national security policy.

China’s Bid to Control America’s Energy Resources:

“Beijing is deploying predatory trade practices to seize control of the means of production on a global scale….

“Now, China has set its sights on controlling America’s energy industry….

“Just as they dumped steel and aluminum, drywall and PC plastic pipe, the Chinese have been dumping drilling equipment in the U.S. at prices so low American manufacturers can’t compete….

“And it’s not just low-end pipe fixtures. Chinese imports now target the higher-end market for more specialized equipment.

“The supply chain crucial to American energy dominance is made up of scores of small, independent family-run businesses, and thousands of jobs. All of this is at risk.

“China circumvents…tariffs by transshipping their goods through India, South Korea and other countries. Imports of Indian and Korean couplings made from Chinese steel have increased threefold over the last two years….

“China is out to cripple our domestic oil drilling equipment industry the same way it has driven so many of our other industries to the brink of extinction.

“If it succeeds, China will have veto power over the energy essential to America’s economy and national security.”

We’re on the verge of wholly handing Communist China our domestic oil and gas infrastructure.

Which I’m sure China won’t shut down – or threaten to shut down – any time our government protests even slightly any of China’s very many anti-American-and-World actions.

But hey – I just saved four cents on a gallon of gas.

So it’s all good.

The post We Shouldn’t Be Doing Business with Communist China appeared first on RedState.

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‘My Plan B Is Maybe My Plan A’: Trump Threatens New Tariffs on China

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President Trump on Wednesday played down the importance of securing a trade deal with China as he prepared to meet with President Xi Jinping of China this weekend, saying he was ready to proceed with additional tariffs if negotiations between the countries failed to get back on track.

Mr. Trump said it was “possible” that a deal could ultimately be reached and that China was eager for an agreement. But he said he was prepared to impose tariffs on another $300 billion of Chinese products, on top of the 25 percent levy he has already placed on $250 billion of Chinese imports. Mr. Trump also indicated he might limit the next round of tariffs to just 10 percent.

“My plan B is maybe my plan A,” the president said in an interview with Fox Business Network. “My plan B is that if we don’t make a deal, I will tariff and maybe not at 25 percent, but maybe at 10 percent, but I will tariff the rest of the $600 billion that we’re talking about.”

Mr. Trump and Mr. Xi are scheduled to discuss the continuing trade tensions on Saturday at the Group of 20 summit in Osaka, Japan. But although both the United States and China are feeling the burden of a bruising trade war, there appears to be little chance of a quick resolution to an economic conflict that has beaten down companies and consumers on both sides of the Pacific.

In many ways, the ability to strike a deal has gotten harder since talks collapsed in early May, when steady progress toward a trade agreement halted suddenly after the United States accused China of reneging on previous promises. Both sides have hardened their positions since then.

Mr. Trump said in the interview on Wednesday that the United States would insist on the same provisions that were included in the deal that fell apart, including protections on American intellectual property.

In addition to preparing to impose tariffs on more Chinese goods, the United States has increased pressure by trying to cut the telecommunications firm Huawei and other Chinese companies off from American components in an effort to severely damage their ability to operate.

China has responded by imposing its own higher tariffs on goods from the United States. Beijing has also said it would draw up its own blacklist of American companies that it viewed as “unreliable,” a move meant to retaliate against the United States for cutting Chinese companies off from American technology.

There is incentive in both the United States and China to get the negotiations back on track. The United States economy is at risk as a result the trade war and the Federal Reserve has cited uncertainty surrounding trade policy as a reason it may cut interest rates. Stock markets have rallied and plummeted in turn with the president’s remarks on China.

The tariffs have also hurt the Chinese economy, piling on to the effects of a sharp but temporary credit crunch last year. Mr. Trump’s current tariffs extend to roughly 2 percent of China’s economic output. Consumer confidence is weak, and growth in industrial production has slowed to a crawl.

On Wednesday, Mr. Trump once again claimed that China was bearing the full burden of the tariffs, not the United States, an idea that economists have disputed. He said the United States was “taking in a fortune” because of his levies, and that many companies were deciding to move out of China.

After pausing talks for several weeks, both sides have once again resumed negotiations. Mr. Trump hosted a call with Mr. Xi last week, while Steven Mnuchin, the Treasury secretary, and Robert Lighthizer, the top trade negotiator, spoke to their counterpart, Liu He, China’s vice premier, on Monday.

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Why Hong Kong’s Protesters Are Turning to G20 Leaders for Help

Protesters in Hong Kong have flooded the streets and the grounds of government offices in rallies over the past three weeks against an unpopular bill that has thrown the territory into a political crisis. On Wednesday, they directed their appeals to a new audience: the world.

Hundreds of protesters, dressed in black and white T-shirts, demonstrated at foreign governments’ consulates in Hong Kong to demand that world leaders address their concerns at the annual summit of the Group of 20 later this week in Osaka, Japan.

The turnout paled in comparison to recent demonstrations, which have been among the city’s largest, that have already forced Carrie Lam, the embattled chief executive, to suspend the bill. The contentious bill would allow the extradition of Hong Kong’s residents and visitors to mainland China’s opaque judicial system.

But demonstrators still want the legislation to be formally withdrawn and they want to send a broader message that they will resist the erosion of the civil liberties that set the city apart from the rest of China.

The demonstrators hope to draw to Hong Kong the attention of the leaders of 19 industrialized and emerging nations and the European Union, who will soon arrive in Osaka. They say that world events have given them extra leverage in forcing Mrs. Lam and Beijing’s leaders to agree to suspend the law.

“Without the trade war chaos and the G20 summit, would Carrie Lam have announced the suspension?” said Joshua Wong, a prominent youth activist.

The demonstrations represent the biggest resistance to Beijing’s rule on Chinese soil since Britain handed back the territory in 1997, said Willy Lam, a political scientist at the Chinese University of Hong Kong.

“This is a direct slap in the face of Xi Jinping,” said Mr. Lam, “and so some Western countries, particularly the U.S., may want to use this as an excuse to further put pressure on Xi Jinping.”

ImageWestlake Legal Group merlin_156617709_972f21e5-200c-4c21-a10e-f0365505f685-articleLarge Why Hong Kong’s Protesters Are Turning to G20 Leaders for Help Wong, Joshua (1996- ) University of Hong Kong United States International Relations Lam, Carrie (1957- ) Hong Kong Group of Twenty extradition Demonstrations, Protests and Riots Democratic Alliance for the Betterment and Progress of Hong Kong Chinese University of Hong Kong, The China

Carrie Lam during a news conference last week. Mrs. Lam, Hong Kong’s chief executive, appeared to be lying low this week, perhaps to avoid embarrassing President Xi Jinping of China ahead of his trip to Japan or setting off a fresh conflict with her critics at home.CreditLam Yik Fei for The New York Times

But China says it will have none of it. Zhang Jun, an assistant foreign minister, told reporters this week that Beijing opposed discussing Hong Kong at the G-20. “Under no circumstance would we allow any country or individual to intervene in Chinese internal politics,” he said.

Jeremy Hunt, the British foreign secretary, said on Tuesday that the government would not issue licenses for crowd control equipment to Hong Kong “unless we are satisfied that concerns raised on human rights and fundamental freedoms have been thoroughly addressed.” He called for an independent investigation of police violence, echoing one of the demands of the protesters.

The protesters’ first stop in what they described as a marathon march was the American consulate. There, Lawrence Wong, a 46-year-old filmmaker, handed to an American consulate spokesman a letter addressed to President Trump. The letter asked Mr. Trump to raise Hong Kong’s issues at the G20 with Xi Jinping, China’s top leader.

“We hope President Trump can give President Xi some pressure,” Mr. Wong said in an interview later. “We need all the friends of liberal democracy, people who believe in human rights and freedom, to be on our side.”

President Trump has expressed sympathy for the Hong Kong protesters, but not offered to take up their cause at the summit, where he is expected to meet with Mr. Xi to discuss trade.

But a bipartisan group of American lawmakers, prompted by the trade war and the protests, earlier this month introduced a bill that could affect Hong Kong’s trade status. That bill angered China, which summoned a senior American diplomat in Beijing to lodge a complaint against what the government saw as foreign interference in its affairs.

If passed, the bill would require the State Department to affirm every year that the territory remained autonomous from the mainland. If the department found that Hong Kong had lost its autonomy, that could make Hong Kong subject to controls the United States imposes to prevent the shipment of many high-tech, militarily sensitive goods to mainland China.

Edward Yau, Hong Kong’s secretary of commerce and economic development, said that Hong Kong’s separate trade status from mainland China is secured by many international agreements and by pacts with Beijing. The city is a big base for American banks and other companies, he added.

“We help push the door open for overseas companies into the mainland,” Mr. Yau said in an interview in his office last week.

Mrs. Lam appeared to be lying low this week, perhaps to avoid embarrassing Mr. Xi ahead of his trip to Japan or setting off a fresh conflict with her critics at home.

Protesters barricaded an entrance to the police headquarters on Friday.CreditLam Yik Fei for The New York Times

A standing weekly meeting of her Executive Council, scheduled for Tuesday, was canceled. And even though Hong Kong’s protests have made global headlines in recent days, her office has not issued a news release for a week.

Mrs. Lam’s popularity in the city has plunged since she started pushing the extradition bill several months ago. On Tuesday, the University of Hong Kong said Mrs. Lam’s popularity rating had fallen by more than 10 percentage points in the past two weeks to 33 percent, a historic low for the position of chief executive. Even some of Mrs. Lam’s allies in the territory’s pro-Beijing political establishment have joined calls for her to withdraw the bill.

The leader of the largest pro-establishment party, the Democratic Alliance for the Betterment and Progress of Hong Kong, said on Sunday that supporters of the extradition bill would not oppose the government if it gave in to the demands of the protesters and fully retracted the legislation.

The party’s leader, Starry Lee, when asked in a televised interview whether the party would support or agree with the government if it described the bill as withdrawn instead of suspended, said: “If the government believes that doing this would help repair society, I think we would support and understand.”

The protest movement, which has been largely leaderless, appeared to be weighing its desire to publicize its cause against concerns that acts of civil disobedience would alienate the residents of this financial hub known for its efficiency.

Last Friday, thousands of protesters, mostly teenagers and people in their 20s dressed in black, drew criticism after they surrounded police’s headquarters for 15 hours and filled the lobbies of at least two other government buildings, disrupting some services.

Dozens of protesters tried to repeat their blockade on Monday, preventing people from entering government buildings in central Hong Kong, in what they called a noncooperation campaign. Local television aired interviews with irate Hong Kong residents who were unable to pay their taxes or use other government services.

A day later, a handful of protesters turned up at the same site — this time, to apologize for inconveniencing the public.

And on Wednesday, the protesters took pains to keep their demonstrations orderly. They stayed on sidewalks, observed traffic lights, kept chanting to a minimum and focused their efforts on waving signs saying “Please Liberate Hong Kong” and handing over letters to embassy officials.

The protesters are most likely aware that Hong Kong residents could eventually tire of widespread civil disobedience, as many did during the Occupy Central protests that paralyzed commercial districts in the territory for weeks in 2014.

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