Adam Townsend

Exports were $179b. imports were $557b.

Our trade deficit with China is $378b

To resolve this generational and untreated deficit, in the summer of 2018, the President Trump initiated 25% tariffs on $15 billion in imports from China. China retaliated against US exports of agricultural and other products.

The US in September 2018 imposed 25% tariffs on second $35 billion in imports from China in response to China retaliation. China retaliated again.

US then imposed 10% tariffs on $200b in imports from China with a trigger of January 1, 2019 for tariffs to increase to 25%. They were granted an extension. The first 50b of the 200b is ‘Ad Valorem Duties’ - in proportion to the estimated value of the goods or transaction

In Early March, 2019, notifying the world as only Trump can...with a tweet, the suspension was removed and tariffs were increased to 25% and a NEW 25% duty would be imposed on the remaining $325 billion worth of imports from China “shortly”.

The trade war has been yielding billions to the Treasury billions of dollars

Because of the existing US trade deficit the US could weather a trade war much better than China. We’ve got nowhere to go but up, China has nowhere to go but down. Now we are negotiating whether its a plunge or a trip.

301. You’ve heard of this, your about to find out what it is. Buckle up.

In August 14, 2017, President Trump instructed US Trade Representative Robert LIghthizer to  investigate under “section 301” several urgent issues:

(abbreviating) 1. Chinese government utilizing opaque & discretionary administrative approval processes, joint venture requirements & other mechanisms in order to require or pressure the transfer of technologies & IP to Chinese companies.

2. Policies and practices that deprive U.S.companies of the ability to set market-based terms in licensing and other technology related negotiations and undermine U.S. companies’ control over their technology in China.

3. The Chinese government reportedly directs and/or unfairly facilitates the systematic investment in, and/or acquisition of, U.S. technology companies

4. Determine if the Chinese government is conducting or supporting unauthorized intrusions into U.S. commercial computer networks or cyber enabled theft of IP, trade secrets, or confidential business information

The report lists ten IP Agreements the Chinese government signed from 2010 to 2016,

All those agreements between the US and China were (drumroll) breached.

China ignored its obligations and continued its cyber hacking to steal US IP. Its excuse has been that it is still a poor, developing country, and deserves a pass from its commitments. They challenged Bush and Obama. They won. They also bribed a lot of people, they won that too.

Calc’ing the value of IP is thorny. One way is to approximate what pilfered IP would take in the market. But this schema is tricky… If/when China steals IP and can’t figure out how to make a product with it, the loss from the theft is zero. If the calc is measured by competing

products, and there aren’t any, the harm could be zero, there is likely no market for a square wheel.

Stolen IP doesn't mean that the pilfer’d has lost the ability to make the product. What has happened is that it now faces a new competitor. China disregards its commitments to trade agmts and WTO obligations...and it cripples foreign competition...

It has created a protected Chinese market, gives its internal companies subsidies for foreign sales & imposes NONTARIFF barriers to hobble American companies. It’s a logical strategy, but flouts the rules and it's been permitted, bribes do that.

Stealing IP doesn't solve all of China’s schemes, they also need the technical and manufacturing proficiency to make the product. Here’s an example of that in motion: An airplane…

China used to make crappy Russian airplanes from crappy factories. China wanted to change that and become ‘competitive’. China announced it wanted to buy billions in Western planes, the good stuff. Western firms rushed to sell it aircraft...HOWEVER...China required COproduction,

Chinese companies must work w/Western aircraft firms to the pane and parts. This went on for 2 decades and it taught Chinese companies essential production know-how. This is ‘tech transfer’ - it’s not IP theft. The problem is not that China builds airplanes/parts, it IS that

China uses its Gov subsidies and insists that its domestic airlines ‘buy Chinese’ and has installed barriers to foreign cos to gain an insurmountable advantage. intermission. Vox investigates: Is it really fun to stay at the YMCA