U.S., China to Resume Trade Talks, but Obstacles Remain
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South Korea and Japan, two of America’s closest allies, are tumbling into a dangerous economic-diplomatic war over a South Korean Supreme Court decision that ordered Japanese corporations to compensate Korean forced-labor victims from World War II. At the heart of the dispute is a legal disagreement over a 1965 treaty that triggers centuries of bad blood and spiritual animosity between the two countries.
On July 12, President Trump surprisingly decided not to levy a quota on uranium imports, departing from his past enthusiasm for limiting purchases from abroad. The yearlong lead-up serves as the latest example of the president’s extensive power over trade.
Last month, Ellie Geranmayeh and Manuel Lafont Rapnouil wrote a report for the European Council on Foreign Relations, arguing that Europe needed to hit back hard against U.S. secondary sanctions targeting Iran. They recommended that Europe consider measures such as creating new financial channels outside U.S. control, investigating European companies that comply too readily with U.S. threats and targeting U.S. companies in retaliation for sweeping U.S.
U.S. and Chinese Negotiators Make Contact Following the G-20 Summit
On May 30, the White House announced yet another new policy aimed at addressing the purported crisis of unlawful immigration across the U.S.-Mexico border. President Trump’s statement proposes a dramatic new strategy—putting tariffs on U.S. imports from Mexico unless and until Mexico takes steps to reduce illegal immigration into the United States:
On May 15, President Trump once again declared a national emergency to invoke legal authority to make sweeping changes to U.S. policy, this time to secure the telecommunications supply chain. I’ve already made my views clear on Huawei’s suitability for U.S. markets and the need for a blanket ban on Chinese-sourced telecommunications equipment in U.S. infrastructure.
The United States has significantly ratcheted up its trade war with China in recent weeks by firing two new shots. First, President Trump signed an executive order that is expected to restrict Chinese telecommunications companies Huawei and ZTE Corp. from selling their equipment and services in the United States.
U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer concluded another round of trade talks with their Chinese counterparts last week in Beijing. Much of this round centered on how to handle key structural issues surrounding technology transfer and data storage.