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U.S.-China Trade: This week's U.S.-China trade talks won't likely result in a final resolution of all trade disputes between the two countries. Even so, President Trump will come under pressure to accept a deal, any deal. Bad idea.
We've noted before that we are free traders at IBD. It's really the linch-pin of the free-market system. But whatever you might think about Trump's tariffs on China — and, for the record, we didn't like them — they have been effective in getting China to treat U.S. demands seriously.
US - Requests - Access - China - Markets
But on U.S. requests for greater access to China's markets for U.S. goods, Trump shouldn't bend. Nor should he ease off the pedal when it comes to China respecting our intellectual property and copyrights, while also forcing U.S. companies to give up their secrets to Chinese "partners" as the price of doing business in the Middle Kingdom.
And, yes, China should level the playing field by lowering its massive subsidies to state-owned firms that often make it impossible for U.S. goods to compete with Chinese ones.
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Americans - China - Plans - Revamping - Economy
This is important, since most Americans know little of China's plans. They include a massive revamping of their entire industrial economy by 2025, focused on 10 strategic sectors. Among them are industries the U.S. now dominates, including aerospace, semiconductors, artificial intelligence, alternative-energy vehicles and robots.
Leapfrogging The U.S.
Goal - European - Union - Years - US
That's the goal, just as it was with the European Union 20 years ago: To leapfrog the U.S. economically.
Of course, no one should expect China's Xi Jinping to give up his grandiose plans. We simply ask that, in pursuing them, he plays by the same rules as the rest of the developed world. China doesn't do that now. As kids often say in the schoolyard, no cheating allowed.
Week - Reuters - Headline - Suggesting
Last week, Reuters ran an intriguing headline suggesting...
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