Conflicting discussion by Trump administration officials of “decoupling” China’s U.S. trade deal falls into a daunting reality: Chinese sales about U.S. goods are increasing, American businesses’ expansion into China increases, and investors remain skeptical about splitting the world’s largest economies.
White House trade advisor Peter Navarro on Monday night gave Asian markets a scare by telling Fox News Channel that the U.S.-China trade deal was “over.” U.S. stock futures fell, the dollar rose, and also volatility indices rose.
On Monday night Navarro quickly backtracked, saying he also was referring to a lack of trust. Between the United States and China over the coronavirus outbreak. President Donald Trump has already confirmed instantly that the contract is intact.
Decoupling the trade deal
Larry Kudlow, director of the National Economic Council, praised Beijing on Tuesday. Telling Fox Business Network “they have actually picked up their game” when it comes to the trade deal.
The Trump administration’s damage control efforts come after Trump said last week that “China’s complete decoupling” was an option that overruled the U.S. Robert Lighthizer, a trade representative who had told lawmakers that decoupling was not realistic.
The Trump re-election campaign made “the hard on China” a central part of its agenda in Beijing. The White House, more than any other country, blame the spread of the coronavirus killed by more than 120,000 Americans.
However, the on-the-ground reality challenges part of this message. That the United States can and will be willing to move away from the largest supplier.
U.S. officials, including Mike Lighthizer and Secretary of State and Steven Mnuchin. Recently reiterated China ‘s commitment to fulfill the Phase 1 trade agreement calling on China for $200 billion over the next two years. To boost purchases of U.S. farmers and manufacturers of goods, energy and services.
On Tuesday the US economy was more integrated with China than the former Soviet Union. Pompeo, asked Hugh Hewitt about prospects in the syndicated radio program about a new cold struggle.