Trump promised to fix the broken trade deal with China. Here are five specific ways he has made good on that promise.
What’s so different and so good about Trump’s new trade deal with China? Here are Five specific categories.
1) Intellectual Property Protection
Intellectual property is now protected under this trade deal in ways that it was not previously. Additionally, there are remedies available to companies who believe their IP rights are being violated.
2) China Boosting US purchases
Compared to the 2017 baseline, China is committing to increase their purchase of US goods by no less than $200 Billion.
3) Tech Transfer
China will no longer force companies to involuntarily give their technologies to the Chinese Government. Any transaction will be voluntary and market-based.
4) Currency Enforcement
Trump campaigned on China engaging in unfair currency manipulation practices. This deal gives a mechanism and some leverage that can be used against China if they go back to such practices.
5) Financial Services
American financial service companies have wanted access to Chinese markets for the longest time. They will now have it.
“China shall allow U.S. financial services suppliers to apply for asset management company licenses that would permit them to acquire non-performing loans directly from Chinese banks, beginning with provincial licenses. When additional national licenses are granted, China shall treat U.S. financial services suppliers on a non-discriminatory basis with Chinese suppliers, including with respect to the granting of such licenses.”
“No later than April 1, 2020, China shall remove the foreign equity cap in the life, pension, and health insurance sectors and allow wholly U.S.-owned insurance companies to participate in these sectors. China affirms that there are no restrictions on the ability of U.S.-owned insurance companies established in China to wholly own insurance asset management companies in China.”
“No later than April 1, 2020, China shall eliminate foreign equity limits and allow wholly U.S.-owned services suppliers to participate in the securities, fund management, and futures sectors.”
“China affirms that a wholly U.S.-owned credit rating services supplier has been allowed to rate domestic bonds sold to domestic and international investors, including for the interbank market. China commits that it shall continue to allow U.S. service suppliers, including wholly U.S.-owned credit rating services suppliers, to rate all types of domestic bonds sold to domestic and international investors. Within three months after the date of entry into force of this Agreement, China shall review and approve any pending license applications of U.S. service suppliers to provide credit rating services.
Each Party shall allow a supplier of credit rating services of the other Party to acquire a majority ownership stake in the supplier’s existing joint venture.”
Peter Navarro goes even further. In an interview he gave on Hugh Hewitt he touched on Trump’s underlying economic political philosophy. You can check that out here: NAVARRO: Trump Gained UNPRECEDENTED Concessions From China In This Trade Deal