July 24, 2021

Towards Sino-American Trade Relaxation

It was as much a political rally as the signing of an international agreement. The Republican President made the fun last for fifty minutes at the White House on Wednesday, January 15. After being praised by his vice-president Michael Pence, Donald Trump introduced his teams, then all the elected officials from the Midwest present, as well as the big bosses. “We have all the Who’s Who of the business”, he rejoiced.

In attendance were finance billionaire Stephen Schwarzman, founder of the Blackstone investment fund, very close to the Chinese, new Boeing boss Dave Calhoun, but also Oklahoma oil magnate Harold Hamm.

Donald Trump also greeted Henry Kissinger, 96, who had worked, under Richard Nixon, to establish diplomatic relations with Communist China, Jared Kushner, his son-in-law, or even the host of the conservative Fox News channel, Lou Dobbs. Objective: to show that he was in business with all of America while the “Democrats-who-do nothing”, in the words of the American president, launched “Another scam”, namely his impeachment trial.

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An “armistice” hailed by the markets

Mr. Trump, who has announced that he will be traveling to China shortly to meet his «Ami» President Xi Jinping gave the floor to negotiator Liu He, vice premier of China, who had been standing for nearly an hour. The latter read a letter from President Xi in Chinese, explaining that the agreement was “Good for China, good for the United States and good for the world”. The negotiator then spoke a few words of satisfaction, prompting the ” cooperation ” rather than at the « confrontation », embellished with Chinese proverbs.

It was only after the signing that the contents of the 94-page China-US deal were revealed. This “Phase one” marks an armistice hailed by the markets, which broke records on Wednesday.

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The most concrete measure relates to the expected increase in Chinese imports of American products, which is expected to reach an additional 200 billion dollars (179 billion euros) over two years. The sum is divided into industrial products (78 billion dollars), hydrocarbons (52 billion), services (38 billion) and agricultural products to the tune of 32 billion. To this end, the Chinese are lifting a whole series of phytosanitary and non-tariff barriers to American imports.

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