Monday, July 08, 2019

Quora: What is China's strategy?

Quora: What is China's strategy in aggressively announcing it requires complete removal of all tariffs for a deal to end the trade war right after an amicable meeting at the G20 between President Trump and Xi where it already got concessions on Huawei?

Ridzwan Abdul Rahman, Self employed (2000-present)
Answered

China went into the G20 meeting with the US after having announced three terms that must be fulfilled before an agreement can be signed:

- Remove sanctions on Huawei
- Remove all tariffs (both sides)
- Do not persuade China to buy more than what was agreed in December 2018

Trump agreed to remove the sanctions on Huawei, not just because China asked for it but also because the affected US companies asked for it.

Trump did not agree to the removal of tariffs and we don’t know if the US team will continue to pressure China to buy more.

So China is not asking for something new other than what they presented to the US team at the G20 meeting. After all, what is the point of having an agreement if the tariffs remain.

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