China making concessions in trade standoff with Trump

Daily News Article - April 11, 2018

Questions

1. What did Chinese President Xi Jinping promise to do regarding Chinese trade practices during his speech at a business conference on Tuesday?

2. How did President Xi’s portrayal of China’s trade practices differ from reality?

3. What had President Trump threatened to do if China did not enact fair trade practices?

4. Many media outlets warned that China had “threatened to retaliate if Washington follows through with proposed tariffs.” How did two experts view President Xi’s announcement in their reports? (see para. 10-12)

5. Ask a parent: are you surprised by President Xi’s concessions following President Trump’s calls for China to enact fair trade policies? Please explain your answer.

6. Read the following tweets from President Trump over the past week, prior to President Xi’s announcement:

April 4: “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!”

April 6: “China, which is a great economic power, is considered a Developing Nation within the World Trade Organization. They therefore get tremendous perks and advantages, especially over the U.S. Does anybody think this is fair. We were badly represented. The WTO is unfair to U.S.”

April 7: “The United States hasn’t had a Trade Surplus with China in 40 years. They must end unfair trade, take down barriers and charge only Reciprocal Tariffs. The U.S. is losing $500 Billion a year, and has been losing Billions of Dollars for decades. Cannot continue!”

April 8: “President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!”

April 9: “When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!”

Following President Xi’s announcement on Tuesday, President Trump tweeted:

April 10: “Very thankful for President Xi of China’s kind words on tariffs and automobile barriers...also, his enlightenment on intellectual property and technology transfers. We will make great progress together!”

Under “Resources” below, listen to the radio interview and watch the video interview with CNBC columnist Jake Novak discussing this issue. What do you think about President Trump’s insistence that China enact fair trade policies?