The US-China trade war and the billions wasted is probably the statement most would use to define the outspoken policy of Donald Trump. Besides, Trump is still in no mood to ease his tariffs on China, according to three insider sources, which had knowledge about his private conversations.
The statement given by the president demands China to suffer more from the imposition of tariffs on goods worth $200 billion, and the longer tariffs last, according to Trump, it will give him more leverage in the case.
According to the same source, Trump’s trade war with China is at the “beginning of the beginning”, and the meeting scheduled for the next month isn’t expected to yield any positive results.
The positive outcome is also not expected because Trump’s team has not yet derived a strategy for the meeting. Therefore, as the Trump and Xi meet, on the sidelines of G20 summit, it is expected to escalate the matter rather than resolving it.
Trump loves mocking, and for that reason as the insider sources allege, he has privately bragged over his move on sanctioning the economy. Moreover, he has also stated that US is strong and China is weak, implying that China will have to kneel down to US in order to make a deal.
Second phase of the story however, holds a different view on Trump’s ability to make China beg to US for removing the economic sanctions.
According to the treasury officials, which contacted with Key Chinese negotiator, Liu He’s camp to exchange information, the current scenario does not hold any real negotiation. “There is some contact with mid-level Chinese, but not much. … I wouldn’t overestimate the planning process,” a U.S. official with direct knowledge told me.
The secretary of Treasury, Mnuchin and his team holds a different perspective and has told the Chinese there’s no point to buy US products as the utmost priority. Correspondingly, other issues such as IP Theft and market address must be taken care of.
Contrarily, the officials have stated that it is the US whose list of requirements hasn’t been altered from the summer, thereby giving an indication that China can survive without the US.
Who will affect whom remains to be seen, while Trump likely puts it up as the “beginning of the beginning”, China does not look much affected with the imposition of taxes on the goods. Besides, what remains common on both sides, is the wastage of funds, which could have otherwise been used for ‘just cause.’