A tweet from President Trump came in yesterday morning when I was preparing to record these opening remarks. His tweet changed the entire dynamic of the final phase of the U.S.-China trade talks. The president wrote that the U.S. would raise the tariffs on $200 billion of Chinese goods, from 10% to 25%. He also wrote: “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!”
Chinese stocks tumbled along with the yuan a few hours after this tweet. The stock market lost 2.8 trillion yuan in value and the offshore yuan fell as much as 1.3 percent to 6.8 per dollar, its lowest since Jan. 10th. The president is taking yet another tough stance on China. Is this the correct position? What is going to happen at the final phase of the U.S.-China trade talk? What really happened on China’s side in the past few months after Xi Jinping accepted almost all U.S. demands? Is there a small window where the U.S. can give China the maximum pressure? And who is the biggest lobbyist for the CCP in the U.S.?