The third round of Sino-US negotiations may refer to the US-EU tariff agreement; China needs to handle it with caution.

From the perspective of tariffs discussed between Europe and the United States, it is estimated that the US also wants us to accept conditions similar to those of Europe in the upcoming third round of China-US trade negotiations. The important parts of the US-EU tariff agreement are threefold: first, both sides will impose a 15% tariff on most goods. Second, the EU will increase its investment in the US by 600 billion USD. Third, the EU will purchase 750 billion USD worth of American energy products, to be completed over three years.

Evidently, such a deal is not equal. However, it can also be seen that what Trump wants most, besides increasing the US treasury through tariffs, is investment in the US and increased purchases of American products. What does this mean? It means that the US also wants China to accept these terms. Increasing investment in the US can not only boost the US revenue, drive economic development, and promote employment, but also allow the US to control key supply chains.

Purchasing American products helps American companies expand their share of the global market. Clearly, bringing manufacturing back to the US is Trump's plan. From our perspective, normal investment in the US and normal purchases of American products are not an issue, but if we accept the conditions similar to those of Europe, it would be very unfavorable for us. Especially increasing investment in the US could accelerate the relocation of manufacturing industries.

Therefore, increasing the purchase of American products is something we can discuss. Whether it is oil, liquefied natural gas, or agricultural products, these can all be discussed. However, more importantly, the US must commit to selling high-tech products to us. In return for our purchase of American products, the US should also increase its procurement of Chinese products. As for increasing investment in the US, especially heavy investment, we have no reason to agree.

Original article: https://www.toutiao.com/article/1838849029988362/

Statement: This article represents the views of the author.