Fold or Double Down in Trade Talks? New York Times

Trade talks between China and the United States have abruptly been put on pause as Chinese President Xi Jinping backed away from previously agreed upon terms that would reform laws constraining US businesses in China. US President Donald Trump and trade representative Robert Lighthizer responded by insisting on their demands, stalemating negotiations that otherwise might have been concluded. While China has demonstrated willingness to protect US intellectual property and permit more market access, the Trump administration wishes to solidify these promises with Chinese laws. Xi, reluctant to give America a public win, must decide China’s next steps, all the more treacherous for his domestic standing as Trump made this dispute highly visible via Twitter. The tightrope marks the fine line between Xi being seen as too soft with the United States or too incompetent to reach a deal that ends tariffs. China’s options described in another New York Times article, include allowing the Chinese currency to depreciate, instigating boycotts, adding bureaucratic measures for US imports, disrupting the global supply chain, or slowing purchase of US treasuries. Any measures could add economic hurt for China just as increased US tariffs force higher prices on US consumers. Xi may bide his time to determine which nation suffers most from Trump’s new round of tariffs. Update: China announced another round of tariffs starting June 1. – YaleGlobal

Fold or Double Down in Trade Talks? New York Times

Stakes are high on both sides as trade negotiations stall and high US tariffs are imposed on thousands of Chinese imports
Chris Buckley and Steven Lee Myers
Monday, May 13, 2019

Read the article from the New York Times about the paused trade talks between China and the United States.

Chris Buckley is a Times correspondent covering China. Steven Lee Myers is a veteran diplomatic and national security correspondent, now based in the Beijing bureau. Keith Bradsher contributed reporting from Taipei, Taiwan. Wang Xiuzhong and Zhang Qian contributed research from Beijing.

Also read “Here’s How China Could Respond” from the New York Times.

Also read “China Announces Tariff Retaliation Starting June 1” from Bloomberg.

© 2019 The New York Times Company

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