?????? it certainly seems to me as though Donald Trump wants there to be a Sino-American trade war—after all they are, as he says, easy to win. If the U.S. wants a tussle with China over intellectual property, the right strategy is for the U.S to back off now, go to the TPP members, apologize for its actions in rejecting the TPP in early 2017, join the TPP, and then negotiate as part of a United front with other TPP members. The U.S. by itself has no leverage —the IP China can grab is worth more than the cost of losing access to the U.S. market. So I have no idea what Marty thinks he is saying here: Martin Feldstein: There Is No Sino-American Trade War: "Chinese negotiators recently offered to buy enough American products to reduce the bilateral trade deficit to zero by 2024. Why, then, have US negotiators rejected that as a way to end the dispute?...

...The current conflict between the United States and China is not a trade war. Although the US has a large trade deficit with China, that is not the reason why it is imposing high tariffs on imports from China and threatening to increase them further after the end of the current 90-day truce on March 1. The purpose of those tariffs is to induce China to end its policy of stealing US technology.... The US wants China to stop requiring American firms that seek to do business in China to have a Chinese partner and to share their technology with that partner. That policy is explicitly forbidden by World Trade Organization rules.... The Chinese use the stolen technology to compete with US firms in China and in other parts of the world.... The US government has no desire to stop China’s economic growth or the growth of its high-tech industries. But stealing technology is wrong. It has gone on for too long and should not be allowed to continue. The US is determined to stop it. If nothing is resolved by March 1, the US will raise the tariff on $200 billion of Chinese exports from 10% to 25%. That will hurt the Chinese economy further and cause the Chinese authorities to take the US demands more seriously–and to negotiate accordingly...


#noted

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