Trump Asia Success: Trump Takes Big Swing At Globalism
At the Asia-Pacific Economic forum President Trump brought the economic hammer down on multi-national trade agreements, and did so in no uncertain terms. His speech came after securing an unprecedented, bi-lateral, $250 billion dollar trade agreement with China, and he served notice that globalism is no longer the preferred methodology when it comes to trading with the United States.
The Wall Street Journal reported:
President Donald Trump delivered a full-throated defense of economic nationalism here Friday, telling a Pacific Rim summit that the U.S. wouldn’t enter into multilateral trade deals, in a message that differed sharply from the one China laid out at the same forum.
The leaders of the world’s two largest economies presented alternative visions of the future of global commerce, with Chinese President Xi Jinping espousing multilateralism and globalization and Mr. Trump calling current trade rules unfair.
“We are not going to let the United States be taken advantage of any more,” Mr. Trump told business leaders at the Asia-Pacific Economic Cooperation forum. The U.S. had opened its markets to the world, he said, but in return, others countries’ “cheating” had disadvantaged American companies and workers.
“I will make bilateral trade agreements with any Indo-Pacific nation that wants to be our partner and will abide by the principles of fair and reciprocal trade. What we will no longer do is enter into large agreements that will tie our hands, surrender our sovereignty and make meaningful enforcement practically impossible,” Mr. Trump said.
China’s leader tried to maintain a brave face as a leader in multinational trade—it has really benefited them, especially where the theft of intellectual property is concerned, something Trump specifically mentioned in his speech—as their leader encouraged other nations to maintain a globalist bent, without the U.S.
Moments after Mr. Trump’s address, President Xi of China called for a more inclusive world economy that was ready for technological change, and brandished Beijing’s claim to being the guardian of free trade.
“We are seeing profound changes in economic globalization,” said Mr. Xi, in his first address to a major multinational forum since consolidating executive power last month. “We should uphold multilateralism, pursue shared growth through consultations and forge closer partnerships.”…
On Friday, Mr. Trump said the U.S. had previously opened its markets but had suffered as other countries had failed to reciprocate, stole intellectual property and unfairly supported their state enterprises.
“They engaged in product dumping, subsidized goods, currency manipulation and predatory industrial policies,” he said.
The contrasting rhetoric of the two leaders could not be more striking. Globalists of course decried Trump’s posture, since it undermines the work of previous administrations.
“We helped form APEC in 1989 to create trade liberalization in an Asian way—nonbinding, and consensual,” said Mr. Goodman, now a senior adviser for Asian economics at the Center for Strategic and International Studies think tank in Washington.
However, Trump’s U.S. trade representative, Robert Lighthizer, issued a statement saying he was ready to execute the pivot in American trade strategy articulated by Mr. Trump.
…one focused more on using the clout of access to the U.S. market to wrest concessions from Asian countries, rather than U.S. leadership and example to foster greater market liberalization.
“The president spoke loud and clear: The era of trade compromised by massive state intervention, subsidies, closed markets and mercantilism is ending,” Mr. Lighthizer said. “The United States will no longer allow these actions to continue, and we are willing to use our economic leverage to pursue truly fair and balanced trade.”
As proof that Trump’s rhetoric is matching his actions, and that though the Chines government is still trying to get other nations to maintain a globalist view, it was Trump who left China with a bi-lateral, non-binding trade agreement. China also announced it would further lower entry barriers in the banking, insurance, and finance sectors, and gradually reduce vehicle tariffs.
Reuters reported on Thursday:
President Donald Trump can return to the United States claiming to have snagged over $250 billion in deals from his maiden trip to Beijing. Whether those deals live up to the lofty price tag is another question altogether.
Watched by Trump and China’s President Xi Jinping at a signing ceremony in Beijing, U.S. planemaker Boeing Co, General Electric Co and chip giant Qualcomm Inc sealed lucrative multi-billion dollar deals.
“This is truly a miracle,” China’s Commerce Minister Zhong Shan said at a briefing in Beijing.
The quarter of a trillion dollar haul underscores how Trump is keen to be seen to address a trade deficit with the world’s second-largest economy that he has long railed against and called “shockingly high” on Thursday…
Some huge deals were announced. Among them is a 20-year $83.7 billion investment by China Energy Investment Corp in shale gas developments and chemical manufacturing projects in West Virginia, a major energy producing state that voted heavily for Trump in the 2016 election…
Qualcomm signed non-binding agreements worth $12 billion with Xiaomi, OPPO and Vivo, three Chinese handset makers that the firm said it had “longstanding relationships” with. Qualcomm already earns more than half of its revenues in China.
Boeing announced a deal with state-run China Aviation Suppliers Holding Co to sell 300 Boeing jets with a valuation of $37 billion at list prices, though analysts said it was unclear how many of these were new orders…
Speaking alongside Trump in Beijing as they announced the deals, Xi said the Chinese economy would become increasingly open and transparent to foreign firms, including those from the United States, and welcomed U.S. companies to participate in his ambitious “Belt and Road” infrastructure-led initiative.
Trump is wielding the big stick of United States economic might to bring the rest of the nations to heel. Like it or not, they are lining up, and Trump is continuing to make America great again abroad.
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