26-09-2021, 03:16 PM
China has no hue on the many requests by Biden for phone talk with Xi Jinping. US Shuman visited Tianjin and received a list of items US needs to perform before talk can be started. One item is release of Meng.
Why US so desperate for talks with China?
1. Trump's 1st stage trade agreement with China is about to expire this year. After that there is no obligation for China to buy huge amount of agriculture products from US. US is to have a general election next year. Biden's Democratic Party popularity rate is falling and needs a lot of votes from farmers. So a new trade agreement is needed to win these votes.
2. Those trade tariff imposed by Trump is not working to US benefits. The tariff is shared 90% by US importers and therefore US consumers. That is the cause for inflation in US now. China doesn't bother with US tariffs. Not only that China is even imposing new tariff on steel products exporting from China to US. Strange, right? Why self-impose tariffs on own products for export? China is actually exporting inflation to US. With steel price up, US will have to pay more for the ambitious infrastructure projects worth 1.9 trillion $. It ensures that US will pay a lot more for the infrastructure projects thus making the US inflation worse.
3. US national debts are at US$ 28.5 trillion now. US needs China to buy more US treasury bonds to support US QE printing of $.
Why US so desperate for talks with China?
1. Trump's 1st stage trade agreement with China is about to expire this year. After that there is no obligation for China to buy huge amount of agriculture products from US. US is to have a general election next year. Biden's Democratic Party popularity rate is falling and needs a lot of votes from farmers. So a new trade agreement is needed to win these votes.
2. Those trade tariff imposed by Trump is not working to US benefits. The tariff is shared 90% by US importers and therefore US consumers. That is the cause for inflation in US now. China doesn't bother with US tariffs. Not only that China is even imposing new tariff on steel products exporting from China to US. Strange, right? Why self-impose tariffs on own products for export? China is actually exporting inflation to US. With steel price up, US will have to pay more for the ambitious infrastructure projects worth 1.9 trillion $. It ensures that US will pay a lot more for the infrastructure projects thus making the US inflation worse.
3. US national debts are at US$ 28.5 trillion now. US needs China to buy more US treasury bonds to support US QE printing of $.