Page 56 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
1.3 U.S.-China Bilateral Commercial
Relationship
Michael Pillsbury, a senior fellow and mentioned as possible targets. China replaced Canada
director of the Center for in 2011 as the largest market for U.S. agricultural goods
Chinese Strategy at Hudson Institute and an adviser to (Chen, Uncertainty).
Trump’s transition team, noted that Trump mentioned in
his 2016 campaign book Great Again his admiration for Shortly after the inauguration of U.S. President Donald
China’s negotiation skills, and said he wanted to appear Trump, Chinese Ambassador to the United States Cui
“unpredictable” to the Chinese. In this, he has richly Tiankai said that China opposed any trade war with the U.S.,
succeeded. During his presidential campaign, Trump which it sees as detrimental to both sides. Trump’s blunt
talked about slapping 45 percent tariffs on Chinese campaign rhetoric on trade with China, such as calling it
exports, triggering wide concern about a possible a currency manipulator and imposing a 45 percent tariff
trade war between the world’s two largest economies. on imports, created speculation that a possible economic
As President-elect, Trump broke a four-decade U.S. conflict between the world’s two largest economies was
diplomatic protocol in early December 2016 by speaking inevitable. “It (trade war) will only cause destruction to
on the phone with Taiwan leader Tsai Ing-wen. He told both sides and neither will benefit from it.” Cui added that
The Wall Street Journal that the “One China” policy is such hostilities between the two nations would inflict even
negotiable. He has also vowed to name China a currency damage to the global economy. Instead of clashing on
manipulator once in office. Trump’s pick of Peter Navarro, trade, Cui said it is an unshirkable responsibility for China
a long-time China hawk, as head of his new National Trade and the U.S. to help inject new momentum into global
Council has increased concern about more trade conflict. economic growth. Citing China as the world’s largest single
Navarro wrote several books on China, including Death by market, Cui said that if the U.S. wants to have a bigger slice
China, in which he blames U.S. economic woes on China. of the Chinese market and benefit more from it, it should
Trump’s Commerce secretary, Wilbur Ross, a billionaire work with China for a more strong and stable China-U.S.
who has done business in China, called China “the most economic and trade relationship.
protectionist country”in his Senate confirmation hearing.
“I don’t think we are going to have a trade war,”said Henry On the same day, former U.S. Secretary of Commerce
Levine, Senior Adviser at the Albright Stonebridge Group, (under George H.W. Bush) Barbara Franklin dismissed
a Washington-based consulting firm. Levine described a trade war between the two countries. “A trade war,
Trump’s advisers and Cabinet picks as people who for as some are predicting, harms both countries, creates
many years have encouraged the U.S. to get tougher uncertainties for many other countries, and is an activity
with China in economic areas. “Therefore, I think we are that has no place anywhere in the interconnected global
likely to see some measures on trade and investment world of the 21st century. Franklin said that she did not
directed at China, measures that frankly would make the think it would happen and could be averted.
government in Beijing somewhat unhappy,” said Levine,
a former U.S. deputy assistant secretary of commerce “Instead, I must believe that these two leaders are
under George W. Bush’s administration. Of course, China pragmatic, that they understand the stakes and the need
retaliated. Officials and scholars argued that China to continue a stable relationship,” she said of President
is “invulnerable” to a trade war given its centralized Xi Jinping and Trump. Franklin emphasized that it’s
government system. Some experts even listed major important for the two countries to engage with each
U.S. companies, such as Apple and Boeing, as possible other, citing dialogue such as the Strategic and Economic
targets of Chinese retaliation. China is the largest Dialogue (S&ED) and the Joint Commission on Commerce
overseas market for Boeing. The company expects that and Trade (JCCT). “These or something similar should
China will buy 6,800 new planes worth $1 trillion over the be continued even if the new administration wants
coming two decades. U.S. agricultural products were also to restructure them,” said Franklin, who now advises
56
1.3 U.S.-China Bilateral Commercial
Relationship
Michael Pillsbury, a senior fellow and mentioned as possible targets. China replaced Canada
director of the Center for in 2011 as the largest market for U.S. agricultural goods
Chinese Strategy at Hudson Institute and an adviser to (Chen, Uncertainty).
Trump’s transition team, noted that Trump mentioned in
his 2016 campaign book Great Again his admiration for Shortly after the inauguration of U.S. President Donald
China’s negotiation skills, and said he wanted to appear Trump, Chinese Ambassador to the United States Cui
“unpredictable” to the Chinese. In this, he has richly Tiankai said that China opposed any trade war with the U.S.,
succeeded. During his presidential campaign, Trump which it sees as detrimental to both sides. Trump’s blunt
talked about slapping 45 percent tariffs on Chinese campaign rhetoric on trade with China, such as calling it
exports, triggering wide concern about a possible a currency manipulator and imposing a 45 percent tariff
trade war between the world’s two largest economies. on imports, created speculation that a possible economic
As President-elect, Trump broke a four-decade U.S. conflict between the world’s two largest economies was
diplomatic protocol in early December 2016 by speaking inevitable. “It (trade war) will only cause destruction to
on the phone with Taiwan leader Tsai Ing-wen. He told both sides and neither will benefit from it.” Cui added that
The Wall Street Journal that the “One China” policy is such hostilities between the two nations would inflict even
negotiable. He has also vowed to name China a currency damage to the global economy. Instead of clashing on
manipulator once in office. Trump’s pick of Peter Navarro, trade, Cui said it is an unshirkable responsibility for China
a long-time China hawk, as head of his new National Trade and the U.S. to help inject new momentum into global
Council has increased concern about more trade conflict. economic growth. Citing China as the world’s largest single
Navarro wrote several books on China, including Death by market, Cui said that if the U.S. wants to have a bigger slice
China, in which he blames U.S. economic woes on China. of the Chinese market and benefit more from it, it should
Trump’s Commerce secretary, Wilbur Ross, a billionaire work with China for a more strong and stable China-U.S.
who has done business in China, called China “the most economic and trade relationship.
protectionist country”in his Senate confirmation hearing.
“I don’t think we are going to have a trade war,”said Henry On the same day, former U.S. Secretary of Commerce
Levine, Senior Adviser at the Albright Stonebridge Group, (under George H.W. Bush) Barbara Franklin dismissed
a Washington-based consulting firm. Levine described a trade war between the two countries. “A trade war,
Trump’s advisers and Cabinet picks as people who for as some are predicting, harms both countries, creates
many years have encouraged the U.S. to get tougher uncertainties for many other countries, and is an activity
with China in economic areas. “Therefore, I think we are that has no place anywhere in the interconnected global
likely to see some measures on trade and investment world of the 21st century. Franklin said that she did not
directed at China, measures that frankly would make the think it would happen and could be averted.
government in Beijing somewhat unhappy,” said Levine,
a former U.S. deputy assistant secretary of commerce “Instead, I must believe that these two leaders are
under George W. Bush’s administration. Of course, China pragmatic, that they understand the stakes and the need
retaliated. Officials and scholars argued that China to continue a stable relationship,” she said of President
is “invulnerable” to a trade war given its centralized Xi Jinping and Trump. Franklin emphasized that it’s
government system. Some experts even listed major important for the two countries to engage with each
U.S. companies, such as Apple and Boeing, as possible other, citing dialogue such as the Strategic and Economic
targets of Chinese retaliation. China is the largest Dialogue (S&ED) and the Joint Commission on Commerce
overseas market for Boeing. The company expects that and Trade (JCCT). “These or something similar should
China will buy 6,800 new planes worth $1 trillion over the be continued even if the new administration wants
coming two decades. U.S. agricultural products were also to restructure them,” said Franklin, who now advises
56
