Trump backs away from China trade war, while a Trump development gets a $500 million Chinese l

[Zippyjuan]

https://www.vox.com/2018/5/21/173759...city-indonedia

Winning for America.

Trump backs away from China trade war, while a Trump development gets a $500 million Chinese loan

May initially looked to be the month that the long-awaited US-China trade war would finally arrive. Sunday, though, things changed. President Trump seems to have basically just backed down.

“We’re putting the trade war on hold,” Treasury Secretary Steve Mnuchin announced on Fox News Sunday. Trump’s proposed tariffs on China are suspended while talks continue on possible revisions to US-China trade policy.

The White House spun this furiously, of course. The New York Times reported on Friday that the Trump administration had secured a Chinese pledge to purchase an additional $200 billion in American-made goods. But financial journalists from CNBC and Bloomberg both reported Chinese officials saying they had promised no such thing. And Monday’s joint statement from US and Chinese officials makes no reference to a specific $200 billion figure. This all comes just one week after he suggested he might back down on an unrelated US-China dispute over the cellphone company ZTE.

But even as economic policy reporters and the business press detail the palace intrigue, reversals, and dissension, most do not even mention a well-documented conflict of interest. They seem too polite to mention that Trump’s personal financial interests play a role in the decision-making.

Donald Trump and Lido City, explained

Trump has a direct financial interest in a major real estate development project essentially underwritten by a state-owned Chinese bank. In a normal administration, this would be a weeks-long scandal dominating media coverage of the White House.

The project in Indonesia, called Lido City, secured a $500 million loan from the Metallurgical Corporation of China (MCC). MCC is a state-owned enterprise, and its involvement in the huge Indonesian development seems to be part of China’s “Belt & Road” initiative. China will finance major international projects that will, in return, use Chinese companies as suppliers.

Lido City, according to its backers’ promotional website, “is an iconic 3,000 hectare Live, Work and Play development set to deliver an unprecedented range of premium first-in-kind leisure, entertainment, and lifestyle choices for elevated living.”

One of those lifestyle choices will be what the developers are billing as Asia’s first “Trump community,” featuring a resort, golf course, condominiums, and private villas:

Developed in partnership with The Trump Hotel Collection, the first Trump community to open in Asia will deliver Trump’s signature brand of unparalleled luxury, modern glamour and uncompromising service, wrapped in world-best design by award-winning international firms Oppenheim Architecture and EDSA.

The community will boast an ultra-luxury 6-star resort for a lavish retreat from the city, offering the Trump brand’s impeccable standard of personalised service and a range of facilities, including premium fine dining restaurants, a wellness destination spa and conference facilities. Complimenting this will be an 18-hole championship golf course designed by Ernie Els, four-time Major winner and 2015 Golf Designer of the Year, together with an elite lifestyle country club providing members with unrivalled privileges, from a 24/7 lifestyle concierge to state-of-the-art amenities. For those seeking a second home, this one-of-a-kind niche community will also feature an exclusive collection of super luxury villas and mansions, as well as high-end resort condominiums, all set with stunning views over the golf course yet secluded within the privacy of spacious landscaped gardens.

The actual terms of Trump’s deal with Lido’s developers are completely opaque, with the Trump Organization merely saying it will be “involved with the 700-hectare Lido development” and that the country club “will showcase the Trump brand’s impeccable standard of excellence by offering a captivating golf experience that features state-of-the-art facilities, 24/7 lifestyle concierge at the Lifestyle Country Club, uncompromising personal service and attention to detail.”

But while the specific terms are unclear, Trump has some kind of licensing arrangement, an equity stake in the development, or both. Either way, he has a clear financial interest in the problem going forward, and the loan from the Chinese government is good news for his pocketbook. The existence of this egregious conflict of interest, meanwhile, has been noted by the press but remains weirdly unintegrated into ongoing coverage of the Trump administration’s back-and-forth on China policy.

More at link.

[phill4paul]

He didn't "back down." He made them come to the table.

China Plans to Boost Imports of U.S. Ag Products
USAgNet - 05/21/2018

China has agreed to increase its imports of American agriculture and energy products and will seek to address U.S. concerns about protection of intellectual property, according to a joint U.S.-China statement released by the White House.

"Both sides agreed on meaningful increases in United States agriculture and energy exports," the statement said. "The United States will send a team to China to work out the details."

Agri-Pulse reports that the statement issued Saturday followed two days of talks that involved Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, U.S. Trade Representative Bob Lighthizer and a Chinese delegation led by State Council Vice Premier Liu He, a special envoy of President Xi Jinping.

The announcement followed China's decision to end anti-dumping and countervailing duty cases involving American exports and a 179 percent tariff on U.S. sorghum.

The sorghum duties were seen as retaliation for recent U.S. tariffs on Chinese washing machines, solar cells and other goods. China announced that it would expand its retaliatory measures to include U.S. soybeans after President Donald Trump said he would impose tariffs on Chinese products as punishment for theft of U.S. intellectual property.

Saturday's joint statement provided little detail on how China would satisfy U.S. IP concerns.

The statement went on to say that the two countries "agreed to encourage two-way investment and to strive to create a fair, level playing field for competition. Both sides agreed to continue to engage at high levels on these issues and to seek to resolve their economic and trade concerns in a proactive manner."

http://www.wisconsinagconnection.com...d=1043&yr=2018

[Zippyjuan]

He didn't "back down." He made them come to the table.



http://www.wisconsinagconnection.com...d=1043&yr=2018

China's agricultural move was to end a tariff they just recently put in place on sorghum. Not a "meaningful" move since they only import about $1 billion in sorghum a year. From April 20th:

https://www.theguardian.com/world/20...n-tariff-trade

US grain ships diverted at sea hours after China imposes grain tariff

Five ships carrying tonnes of sorghum change course after Beijing imposes rule requiring 178% deposit

Ships laden with more than 1.2m tonnes of US sorghum bound for China may have no where to go amid the ongoing trade tensions between Beijing and Washington.

Twenty ships carrying more than $216m worth of sorghum were at sea on Friday, according to Reuters, but least five of them had changed course within hours of China’s announcement this week that it would place stiff tariffs on the grain.

On Tuesday, Beijing said US importers had been dumping the grain, used for animal feed as well as China’s traditional baijiu liquor, on the Chinese market and harming Chinese farmers.

China’s ministry of commerce said it would begin requiring deposits of 178.6% of the value of grain shipments. The five diverted sorghum ships, all loaded in Texas, would have had to pay that deposit, rendering their shipments unprofitable, Reuters reported.

China said the new requirements on sorghum imports were the result of a previous inquiry. In February, after the US placed tariffs on Chinese solar panels and washing machines, China started its own investigation into the impact of US imports on Chinese businesses.

The world’s two largest economies have been locked in a tit-for-tat tariff war over what the White House insists is unfair Chinese trade policy. Donald Trump has threatened tariffs on as much as $150bn in Chinese imports. Beijing has promised to levy major US exports to China, including grains, agriculture, food products, vehicles, and aircraft.

More at link.

[enhanced_deficit]

He didn't "back down." He made them come to the table.

He made NK come to table too.. almost.

That plus Nobel Peace Prize lure may have been a factor too in recent China policy shifts.

Did North Korea just yank the football — and Trump's Nobel Prize — away?

[phill4paul]

China's agricultural move was to end a tariff they just recently put in place on sorghum. Not a significant move since they only import about $1 billion in sorghum a year. From April 20th:

https://www.theguardian.com/world/20...n-tariff-trade



More at link.

Yes. It was a conciliatory gesture as they enter talks. It shows that they have no interest in a trade war. So?

[Swordsmyth]

It ain't over till it's over.

[Zippyjuan]

Yes. It was a conciliatory gesture as they enter talks. It shows that they have no interest in a trade war. So?

Basically things are back to where they were a month ago.