The U.S. trade deficit fell for the second straight month in February, and the politically sensitive deficit in the trade of goods with China narrowed. The Commerce Department said Wednesday that the gap between the goods and services that the United States sells and what it buys from the rest of the world dropped 3.4 percent to $49.4 billion in February, the lowest since June.
President Donald Trump’s top economic adviser says the U.S. and China are “closer and closer” to a trade deal, and that top-tier officials would be talking again this week via “a lot of teleconferencing.” Larry Kudlow’s “guarded optimism, maybe more than guarded optimism” on CBS’s “Face the Nation” on Sunday came after China’s state-run Xinhua news agency reported that progress was made during talks in Washington that ended Friday.
China will reduce direct government intervention in its vast industrial sector, the industry minister said on Monday, as Beijing seeks to ease concerns about its industrial policy, core to Washington's complaints in the Sino-U.S. trade war. The government's pledge to reduce its influence over operational matters in China's manufacturing sector follows an apparent toning down of its high-tech industrial push, which has long annoyed the United States.
Hayman Capital Management founder Kyle Bass thinks any trade deal with China must include enforcement mechanisms against intellectual property theft for the U.S. to truly benefit from it. “Over the last decade, they’ve stolen $2-to-$3 trillion in IP from us. The U.S.′ No. 1 asset, in my view, is our ingenuity, our intellectual property, our ability to innovate...
ITIF President Rob Atkinson testified before the Senate Small Business Committee on the issue of unfair Chinese trade and technology policies and practices and what the federal government should do in response. In his testimony, Rob discussed the importance of a new framework from Senator Rubio for how to think about the economic challenge from China, the nature of the economic challenge posed by “Made in China 2025” (MIC25), and components for more robust trade, innovation and competitiveness strategies, including to help small businesses.
Trump said on Sunday that he’d delay additional tariffs on Chinese goods originally scheduled to begin on Mar 1. He cited “substantial progress” in trade talks between the US and China in several of his Twitter posts in a series of posts on Twitter.
Saturday marked the fifth straight day of the negotiations between the world’s two biggest economies. Talks were extended through the weekend after both sides reported progress in narrowing their differences. The Chinese delegation is scheduled to leave for Beijing on Monday, according to a person familiar with their itinerary. This is the fourth round of negotiations since Washington and Beijing agreed to a ceasefire in their trade war.
Will the US and China enter a long-term technological arms race? The Economist Intelligence Unit (The EIU) said it’s highly likely. “The likelihood that the US and China will make some progress in the ongoing trade talks has increased as a result of mounting domestic pressure in both economies,” said Cailin Birch, Global Economist at The EIU. “Nonetheless, we do not expect a meaningful agreement, as the US and China enter into a strategic competition for economic--and particularly technological--dominance."
Chinese government makes their goal clear. China aims to become the global leader in innovation and manufacturing. This would be an unacceptable outcome for American workers. To drive our own development in a competitive, global economy, we must prioritize the high-wage industries of the 21st century, to the benefit of American businesses, workers, and their families.