Mnuchin Proposing New Trade Negotiations: A Turnaround or a Tactic?

United States Secretary of the Treasury Steven Mnuchin sent a proposal to China on September 12, seeking the initiation of a new round of trade negotiations. Gao Feng, spokesman of China’s Ministry of Commerce, responded the following day that China had received the proposal and welcomes talks. Beijing and Washington are now working out the negotiation details. Escalating trade conflict is not in line with interests of either party, Gao emphasized. Since the trade war was first waged by the US in July, the US has already levied tariffs on $50bn of Chinese products, while China has retaliated with measures worth an equivalent amount. Now, Trump’s government is considering a duty increase on $200bn of Chinese products. With these factors in mind, how should we interpret the signal for talks the US has sent out at this crucial time? Does it indicate a turnaround? Increasing Domestic Pressure on Trump’s Government From running a presidential election campaign to taking office, Trump has always held a tough position on trade issues. He has placed the blame for US trade imbalances on other countries, saying they take advantage of the US. Hence, by bearing the torch of trade protectionism, Trump has shaped himself in the image of a strongman who fears no international pressure and always safeguards US interests. This image has won […]

Sep 17, 2018

U.S. Set to Step on China’s Red Line

The National Defense Authorization Act (NDAA) for Fiscal Year 2019 was signed by U.S. President Donald Trump. The act includes several Taiwan-related clauses which aim to strengthen the so-called “Taiwan’s security”, promote Taiwan-U.S. exchanges.

Aug 20, 2018

Revisiting Trump’s Unusual Diplomacy

U.S. President Donald Trump’s imposition of trade tariffs on China has gone further than ever to establish his approach to diplomacy by means of shock effects. It is not that he is suddenly launching new ideas which had not previously been mentioned in the U.S. political debate.

Jul 20, 2018