China-US talks have just ended, achieving significant breakthroughs, but at the same time, the US Trade Representative accidentally let slip a remark. Trump has left a contingency plan in case of future conflicts with China, to retaliate against China.

American Trade Representative Grull

As soon as Trump left, American Trade Representative Grull accidentally let slip a remark. It is indeed a cause for celebration that China and the US reached a series of consensus, but Trump still kept a contingency plan. Grull clearly stated in an interview that the issues in Sino-US relations have not been completely resolved, and the US will continue the Section 301 investigation against China.

As is well known, the China-US talks achieved major breakthroughs, and both sides suspended a series of tariffs and investigations, agreeing to "temporary truce." The US Treasury Secretary, Bennett, has been continuously announcing good news to the public these days, including that China will purchase 25 million tons of American soybeans by the end of the year, and also purchase American energy.

However, the Chinese side has not given a clear response to these so-called "good news" announced by the US Treasury Secretary, and the outside world remains skeptical about the US's statements. However, Grull's remarks obviously contradict the previous statements made by the US. American media comments said that Trump's move was to prevent the subsequent Sino-US agreement from breaking down, and thus have a tool to retaliate against China.

China-US Talks

Many people don't understand what "Section 301" means. In fact, it is a "unilateral sanction tool" under the US Trade Act of 1974. Simply put, if the US believes that a country's trade policy is "unfair," it can conduct an investigation and impose tariffs without going through international organizations such as the WTO.

However, Grull's statement about reserving the "Section 301" investigation against China refers to the implementation of the first phase of the China-US trade agreement. The core purpose of this investigation is to check whether China has fully fulfilled its obligations in the first phase trade agreement signed in 2020, including commitments on intellectual property protection, technology transfer, and agricultural market opening.

US Soybeans

Before the China-US talks, Trump once said he would no longer conduct inspections on China. But now it seems that Trump has not easily given up this leverage. On one hand, the US signs an agreement to suspend the trade war, while on the other hand, it continues to push forward the Section 301 investigation. This seemingly contradictory approach actually reflects the duality of its trade policy toward China.

On one hand, the US needs short-term results to ease domestic economic pressure. Extending the suspension of tariffs allows US consumers to continue enjoying relatively low-priced Chinese goods, avoiding the aggravation of inflation pressure. At the same time, China's resumption of purchasing American soybeans and other agricultural products can directly benefit Trump's agricultural state voters.

US Treasury Secretary Bennett

But on the other hand, the US intends to maintain long-term strategic pressure. By continuing the Section 301 investigation, the US retains the right to take further action in the future, ensuring that it has leverage in the next stage of negotiations. Therefore, Grull was right when she said that issues in Sino-US relations still exist, and the two sides are only temporarily on a strategic truce, and future negotiations are still needed.

However, this seems to indicate that the sincerity of the US's desire to cooperate with China is questionable. The Sino-US trade relationship is in a complex balance. The limited agreements reached provide breathing space for both sides, but deeper structural contradictions remain to be resolved. While the US shakes hands and makes peace, it still holds onto its leverage. This trade game between the world's two largest economies is far from over.

Original: https://www.toutiao.com/article/7567269128671609379/

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