If the trade war was a Halloween horror movie, the Chinese just ran into a room with no way out
Share to linkedin... [+]. Don’t fear! There might be an escape hatch somewhere.
“Ignore the posturing and just look at what’s on the table,” Trump’s trade and manufacturing director Navarro told Maria Bartiromo this morning onWhat’s “on the table” in Phase 1 is enforcement mechanisms, intellectual property, and the end of forced technology transfer for joint ventures with Chinese firms and currency manipulation.
The latest trade data shows that China’s exports to the U.S. have continued to decline. Total shipments fell 22% in September. The decline was driven by items subject to tariffs of at least 25%. All of this could be why China is willing to play ball on intellectual property in particular, after balking on it back in the spring. The U.S. has long believed that exchanging technology secrets in order to get into China was a trap. Americans wanted to be in China. But they might have been giving up the goods in order to do so, helping China advance quickly and setting them up to compete with U.S.
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