Concern over Possible Division within the Administration over China Trade

It is evident that the initiative of Treasury Secretary Steven Mnuchin supported by U. S. financial and business leaders to reach an accord with China over trade issues is impeded by implacable opposition by elements in the Administration favoring escalation in tariffs. The President has proposed placing tariffs on an addition $200 billion in Chinese products exported to the U.S. with anticipated retaliatory action by China. Unilateral imposition of tariffs on exports to the U.S. will clearly serve as a barrier to continued negotiations. A White House spokesperson noted “The President has been clear that he and his Administration will continue to take action to address China’s unfair trade practices. We encourage China to address the longstanding concerns raised by the United States.” The Administration is apparently unaware of the concept of “face” which is an important determinant in decisions and action in China. To make concessions in an environment characterized by threats might be acceptable in the West, but is antithetical to leaders of the world’s second largest economy. This is expressed in a statement, “China is not going to negotiate with a gun pointed to its head.”