President Trump - the leader of the US-China trade `ring`. 0

President Trump – the leader of the US-China trade `ring`.

(Dan Tri) – Experts say that President Donald Trump may have to make political trade-offs when asking American companies to move production activities from China – the world’s second largest economy.

President Donald Trump (Photo: Reuters)

In a comment on Twitter on August 23, President Donald Trump asked US companies to `immediately consider alternatives to China`, calling on these companies to produce goods in the US, instead of

According to Timothy Stratford, president of the American Chamber of Commerce in China, President Trump has enough power to ask American companies to leave China, but the White House owner may have to make political trade-offs.

“I think it was a very radical step on his part.

“The economic relationship between the US and China is very complex.

Even without Mr. Trump’s instructions, American companies were already considering leaving China due to the impact of the trade war.

According to Mr. Stratford, `the longer trade negotiations stall, the more uncertainty increases.`

“If you’re not confident that you understand the other person’s long-term intentions, then you’re going to be nervous about making a commitment because you don’t know where that commitment is going,” said Stratford, managing partner.

For example, when Mr. Trump directed American companies to leave China, many people asked: `Why did he do that?`

Mr. Stratford said that Chinese President Xi Jinping `certainly does not want to appear weak` before President Donald Trump.

“If President Trump publicly pressures President Xi, we understand that he will have no way back.

Some experts believe that the US has pointed out noteworthy points about China and its trade practices.

Only President Trump can end the trade war?

Wang Huiyao, an advisor to the Chinese government, said that only President Donald Trump has the ability to end the current deadlock of the trade war and reach an agreement with China.

According to Mr. Wang, China has made `every effort,` including passing a foreign investment law in March, to address concerns that the foreign business community often complains about investing in China.

The new law prohibits forced technology transfer from foreign-invested enterprises in China and strengthens intellectual property protection.

Mr. Wang said China’s new law also allows foreign companies to have equal status with domestic companies.

“Changing all the laws in China is impossible, no country can do that, but we passed a new law.

However, some analysts say that China’s new investment law, expected to begin implementation in January next year, is still not enough to satisfy the US.

Just two months after China introduced the new law, President Trump criticized Beijing for suddenly withdrawing some of the commitments the two countries had reached in previous negotiations.

Since then, the US-China trade war has escalated again as the two sides have continuously imposed retaliatory tariffs on each other.

Wang Huiyao, founder and president of the Center for China and Globalization – a research institute based in Beijing, said President Trump has `time and again` raised tariffs on Chinese goods.

However, Mr. Wang affirmed that China is always ready to negotiate.

“We can’t have a perfect deal.


According to CNBC

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