The U.S. wrote the rules for global trade. Now China is using them against Trump.
By David J. Lynch April 2 at 6:56 PM
The Chinese government designed its first concrete response to President Trumps recent wave of protectionist policies to inflict noticeable political and economic pain upon the United States while remaining within the bounds of global trade rules.
China imposed tariffs on a relatively modest $3 billion in American imports. But by hitting numerous products, including fruit, wine, ginseng and pork, that affect congressional districts across the country, China demonstrated that it can exert pressure within the American system.
The goal was to demonstrate resolve without escalation and to encourage disadvantaged farmers and workers to complain to their elected representatives. Beijing is prepared to engage in a slugging match, but its preferred solution to the deepening trade dispute remains a diplomatic outcome, analysts said.
This is a negotiating tactic, said Jeff Moon, a former U.S. assistant trade representative for China. They tried negotiating by hinting at concessions. This is hinting at the sharp end of the stick.
China also is being careful to act within the rules of the global trading system that were established under U.S. leadership over the past seven decades. As it broadens its global role, Beijing is eager to portray itself as a responsible actor in contrast to a rogue United States that is withdrawing from treaties and shunning multilateral cooperation.
more
https://www.washingtonpost.com/business/economy/china-hits-back-on-tariffs/2018/04/02/c7fb9308-36c1-11e8-9c0a-85d477d9a226_story.html