Chinese delegation to visit US after Trump threatens tariff hike

Channel: Fox Business
Published: 11 hours ago

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Kissinger Institute’s Robert Daly on the trade tensions between the United States and China. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the business capit...



Transcript
Saying no to china's renegotiations for now stock staging quite a comeback today, following president trump's threat to raise tariffs on two hundred billion dollars of chinese goods and potentially more saying that the trade talks are just moving too slowly. The dow ending the day, just 66 points down after being down 471 points at the beginning of the session joining us now, robert daly from the ...
ilson center he's a director for the kissinger institute on china and the united states. Thank you so much for for joining us, robert okay, if i'm china, how do i respond to those tweets from the president that were very strong, very direct, very threatening? This is another unorthodox person thatthey're not used to dealing with? We do understand a delegation we're becoming here, maybe with not everyone on board that originally a plan to be here. How do we expect china to react to this kind of tactic? Well, they've seen some of this kind of tactics before from the president, and they have also seen some of these tactics walk back and result in further delays. This definitely has the attention not only of china's leadership of the chinese stock markets and the chinese people. It appears likely that a low-level delegation will come on wednesday. The vice premier liu, who was to have led that delegation will not come initially, but the thinking is, he may jointhe delegation a few days later. If it looks like there is a deal, china has said repeatedly, it is not going to negotiate with the united states with a gun to its head and they're not going to send their top negotiator unless it looks like there's going to be an amicable settlement. Well, certainly, the next move is china's there's a sense that perhaps what was originally agreed to. We don't know this for sure, but but there's a suggestion that they're now trying to take back at some of what they agreed to initially and that's what slow then talks down and what is annoyed. The president, have you heard something about that? It isn't clear. Whetherthey are actually trying to renegotiate and walk things back, which is a perfectly feasible claim or whether it is simply that they now finally have a written text, this 150 pages, and so sometimes, when you speak about things and you agree to things in a conversation, that's Rather different than when you see it in black and white and have think about how to sell it to your own people, xi jinping.

China'S leader would like this to end. He finds it highly annoying, but he cannot afford to look weak. He can't afford to look like he's caving so for china, it's delicate. They would like to get a deal, but they can't look like they've agreedto, something that is not in china's interest just because they were threatened by a more powerful united states. Well, that raises the the key question. I guess: how can we get a deal with china a deal that we want, addressing all the issues that have been a problem and yet still an able president g to walk away and save face? Well, we can't we have defined this in a maximalist way. We have said that this is not only that the tariffs are not only about trying to correct the trade imbalance and for many american economists, it's not even primarily about that. They don't think that's the problem. The administration has correctly said that there's amuch bigger slate of issues in us-china economic relations, which include technology transfer, china's support of its state owned enterprises, its subsidies to those enterprises, and we have said that that has to be part of this deal. China will not take that they will not make those concessions, because what we're asking for is central to their mode of governance. This is going to be a compromise, and china wants us to give something up too, so it isn't clear where this goes or even, if indeed it ends this week well indeed, and how long it goes on rafa daily. Thank you for your expertise today.

We appreciate it glad to be here. Thank you.


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