Sticking Points In The US-China Trade Dispute

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U.S. President Donald Trump (L) and Chinese President Xi Jinping shake hands at a joint news conference held after their meeting in Beijing on Nov. 9, 2017. The two leaders agreed to keep enforcing U.N. sanctions on North Korea until it rids itself of nuclear weapons while pledging to address the billowing U.S. trade deficit with China. (Kyodo) ==Kyodo (Photo by Kyodo News via Getty Images)

There are a few sticking points in the US-China trade deal that need to be worked out when a delegation goes to China to talk this over. The purpose of the talks is top ease tariffs, and the Chinese believe that they are strong enough to weather any storm. They will talk to the Americans, but there are critical issues that both countries are not yet willing to deal with. This could cause issues, and they must be covered in these talked.

Trade Gap

The trade gap with China is a major issue for the US, but it has become a talking point to the President. This trade gap will not get any smaller with tariffs because that is simply a way of stealing money from Americans to pay for the trade gap. Plenty of countries will take the goods that China makes, and they will be happy to keep their tariffs low. Instead of focusing on the trade gap, the US must focus on partnerships that give both countries what they want.

Tech Theft

IP and tech theft is a major issue because there are many Americans who believe that the Chinese are stealing data every day. They believe that cyberattacks have been done by the Chinese, and some of them believe that the North Koreans are helping. This is a sticking point that could cause talks to break down because it is not obvious that the Chinese government is committing cyber terrorism. If anything, it is Chinese nationals who are doing the job.

Made In America

Trump wants everything to be made in America soon, and he is afraid that everything will be made in China by 2050. He should not be focusing on how much the Chinese make because he knows that companies in America will not pay a living wage to help people make these products. A better focus for the America delegation would be to ask the Chinese how they have set up their system. The US could learn from the Chinese, and tariffs could be lowered in the process.

The Currency

The Chinese yuan is one of the most volatile currencies in the world, and they have stop trading on that currency in the past. The people who are doing business with China are not always happy with the strength of the yuan, and that could be an issue for those who believe that tariffs are necessary. China must go elsewhere to keep their trade up, and they need to continue trading to stabilize the yuan.

If the US chooses to start taxing Chinese goods even more, the Chinese must go elsewhere, and the US economy will take a big hit because they will get nothing from the Chinese.

Investment Problems

Investments and restrictions are a large part of the issue because both the Chinese and Americans know that there are investment restrictions placed on people from both countries. A lot of people come to China to invest, but they have to follow strict rules. The US is not very welcoming at the moment, and that makes it hard for China to come to America and invest.

The trade delegation that is going to China must address all these concerns because this must be settled before the Chinese move on to other trade partners. The US needs China more than it thinks, and heavy tariffs will not stop the Chinese from making and selling products that the US customer and corporation need.

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