Tags: Donald Trump | Financial Markets | corning | qualcomm | zte

Trump's Trade Mastery Protects US

Trump's Trade Mastery Protects US
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Friday, 25 May 2018 12:59 PM Current | Bio | Archive

Many people support President Trump, but at the same time, many of his supporters don't understand his thinking. In particular, they don’t understand his decision-making process, especially when it comes to trade.

I hope that I can help more Americans appreciate that our president is their representative, fighting for all of us, not only to make America great — but also prosperous.

Recently, ZTE, a Chinese telecommunications company, was found by the U.S. Department of Commerce to be in violation of trade sanctions concerning trade with Iran and North Korea. The company settled with the Commerce Department and agreed to pay a fine of over one billion dollars.

They also agreed to follow some structural changes on the way the company does business. As an additional penalty, the U.S. government also imposed a seven-year ban on American companies, like Qualcomm, Corning, and others.

A ban prohibiting them from doing business with ZTE.

On the surface this penalty seems crazy. The company is fined a tremendous sum and American companies are blocked from selling components to them for seven-years.

One can understand the fine, but the question is raised as to why we are penalizing American parts suppliers? Why are we putting American workers at risk of losing their jobs? How is that good for America?

Here is where it is vital that you follow the logic of this decision:

In the past foreign governments or businesses never took our trade policies seriously. Companies from all over the world violated our trade rules without any real penalty. The largest exporter in the world, China, was perhaps the biggest offender. The Congressional Research Service reports that China has an inordinate trade surplus with America of close to $400 billion a year.

President Trump believes that many of the trade deals in the past have unnecessarily cost millions of American jobs. He once again pulled a rabbit out of the hat with this problematic trade issue. He expressed his views on the controversial issues relating to the Chinese telecommunications company ZTE, but he also preserved that business.

The president seems to have threaded the needle in an appropriate way that both ensures punishment on the company, while dialing back an order that went far beyond reason and inadvertently punished American companies.

ZTE was caught in the crosshairs of this trade conflict between the U.S. and China.

The result of this conflict in the short term may hurt some American jobs and unfairly punish American consumers. However, as a result, President Trump and China have agreed on the broad outline of a long term deal that would save the Chinese telecom giant ZTE Corp as well as protect American companies and American jobs in future trade deals.

Because China is our largest trading partner, there is a higher chance of trade conflicts occurring. Some in Congress, including Sen. Marco Rubio, R-Fla. have raised the concern that these Chinese phones are a national security threat and compromise American data communicated on the Chinese phones.

This argument ignores the fact that most of the phones’ components are actually made by American companies. These phones use the same secure networks as all other Android-based phones.

In all cases, of course, America needs to make sure that national security is not compromised through this cellular technology in any ensuing trade deals.

For the foreseeable future, every trade deal is now under scrutiny by the Trump administration to make sure it is fair to all parties. There are many decades and a significant number of trade deals that need to be reviewed and perhaps renegotiated.

President Trump will examine every deal to make sure that all the stakeholders are at the table. One may say that demands by America in both previous and future trade deals will bring stability in world trade. I, for one, believe that fair trade among trading partners, who both respect one another and are honest with each other, is an excellent way to gain peace and prosperity, and I want "the master," President Trump, on my side.

Dan Perkins is an author of both thrillers and children’s books. He appears on over 1,100 radio stations. Mr. Perkins appears regularly on international TV talk shows, he is current events commentator for seven blogs, and a philanthropist with his foundation for American veterans, Songs and Stories for Soldiers, Inc. More information about him, his writings, and other works are available on his website, DanPerkins.guru. To read more of his reports — Click Here Now.

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DanPerkins
President Trump believes that many of the trade deals in the past have unnecessarily cost American jobs. He once again pulled a rabbit out of the hat. He expressed his views on the controversial issues relating to the Chinese company ZTE, but he preserved that business.
corning, qualcomm, zte
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2018-59-25
Friday, 25 May 2018 12:59 PM
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