China is Starting to Cave Proving Trump’s Plan is Working
China and the United States are still locked in a trade battle that is beginning to take its toll on the Chinese people. They are starting to feel the pressure of battling with the United States over trade. Some companies have left China in an attempt to try to escape the extra cost of having tariffs imposed on goods being shipped from China. The United States is so mighty that the effects of the counter-tariffs are not being felt. The tariffs are in place to try to get the Chinese people to deal fairly with those that they deal with.
Both nations are close to finishing up some big parts of the new trade agreement. Both nations are making headway to solve this issue between both countries. In a statement released after the last meeting, it was said “They made headway on specific issues and the two sides are close to finalizing some sections of the agreement. Discussions will go on continuously at the deputy level, and the principals will have another call shortly.” These talks are extremely important for China because they are feeling the pressure of the tariffs. They want the tariffs removed.
Hopes are high that the agreement will move from phase one to the final document. China wants to see that the tariffs are removed as soon as possible. They are expected to ask for them to be removed in exchange for an increase in the purchase of agricultural products from the United States. President Trump is stepping lightly with China in that he is being careful to trust them on their word. They will have to demonstrate their motives before President Trump will agree to anything.
The Chinese have been devastated by the 16-month long trade war. President Trump knew and said that this would be a win for the American people. China has experienced slow markets, slow supply chains, and slow growth. But the United States has seen record growth and unmatched prosperity. The tariffs that the Chinese people placed on the American people have not worked in their favor.
President Trump has stated that “They want to make a deal very badly. They’re going to be buying much more farm products than anybody thought possible.” He is saying that they need to prove what they are saying in action for any of the tariffs to be lifted. President Trump will not budge from his position until good faith has been shown by the Chinese people. The Chinese have been dealing treacherously with the United States, and they will have to prove that their motives are pure.
President Trump does show some grace at times. He did agree to not increase the tariffs that were set to take effect on October 15. China is at the mercy of the United States. China has tried to place itself as a major contender of the financial markets but what has been discovered is that they are not as strong as they seem to be when they face off against the United States. It is the goal of China to get out from under the multi-layered tariffs.
There are even more tariffs that are planned to take effect later in the year if China does not get serious about ending the trade war. All China has to do is abide by what the United States is asking of them and the tariffs will be lifted. Failure to do so will result in more tariffs and higher costs for the Chinese people to pay. This is not rocket science. China has been taking advantage of the American people for too long and now they are finally having to pay for it.
This is a major victory for President Trump as he has forced China to the table to talk. Before, China would have nothing to do with the United States because it had a high profile view of themselves. What they have found is that they are not as mighty as they think they are. President Trump is bringing them down to reality and teaching them that dealing fairly with other people is in their own best interest as a country.