I would like to keep China as a player in the world economy if we can get them to play by our rules (i.e. respect international property rights, etc) and lower their tariffs. They must comply with a list of rules of behavior. I believe we should not go to them alone. Rather we need to approach them with a coalition of countries from NATO as well as the Far east and the South Pacific like Australia, Japan and South Korea. We need to go to China and tell them we value them as a trading partner, and we want them to participate in the global economy. Our concerns are:
They do not respect our Intellectual property rights and have no way of adjudicating a claim against one of their firms if they steal one of our company’s intellectual assets. To accomplish this, they will need to agree to create a judiciary system where we can litigate these violations or they can agree to allow us to adjudicate these disputes at the Court at the Hague for any violations. They must agree to comply with the outcome of those lawsuits.
The tariffs they have on our goods were originally intended to protect their infant industries. Their industries are now fully developed so we need to negotiate a time frame to reduce those tariffs to “0”. To accomplish this, I suggest they lower their tariffs over 5 years, giving them time to increase revenue via economic growth and increased tax revenue. We should offer to lower our tariffs as well increasing productivity in China thus increasing tax revenue to offset the lost revenue from the tariffs.
We would prefer to keep them as a trading partner. However, if they don’t, we will give our companies tax incentives for them to move elsewhere. One idea would be to give them a double tax deduction for expenses they incur moving to another county and a triple tax deduction if they move back to the United States.
I would expect the other counties that participate in this meeting to do something similar.
This will allow us to:
Give our companies time to create the infrastructure elsewhere thus avoiding supply chain disruptions.
Allow China to replace their lost revenue from tariffs with increased income from taxes generated from a growing economy.
Trumps approach to this has been thoughtless. He continues to try and Bully countries as he has done to other businesses his entire life. He is a failure in business, and running the country is proving to be no different. How could anyone not be able to make money owning a casino. His was the only casino to go Bankrupt in Atlantic City. The other countries continue to laugh at his threats.
The few deals he has alleged have negotiated have never been disclosed to us. I am sure he accomplished very little if anything. Like everything with Trump, it is all show with little or no action.
His deal with China is a joke. He got them to continue to sell us their natural resources for which they generate a profit, and he reduced the tariffs back to 25% which is where they were before he started this insanity. They have yet to engage in serious discussions about the tariffs and I doubt they will. They know he is a fool.
We have never seen any details on his alleged agreement with Great Britain. I am sure that will prove to be a meaningless agreement as well.
The emperor is wearing no clothes.
