Celebrate the achievement of the Phase I trade agreement with China, but forget about there being a Phase II, according to far east expert Gordon Chang on Newsmax TV.
"I don't think there's going to be Phase II trade deal," Chang told Monday's "America Talks Live." "Even before the events and announcements of last week, people were pretty skeptical that China would make enforceable promises on structural reform.
"Now, after the Phase I deal, where they actually did get quite a lot, I think the chances of a Phase II deal are even less likely."
White House trade adviser Peter Navarro has been tasked with reforming the seven following points in trade with China:
- Cyber hacking.
- Intellectual property theft.
- Forced technology transfer.
- Goods trade imbalance.
- China state-owned subsidies.
- Currency manipulation.
- Sending fentanyl to kill countless Americans.
State-owned subsides are reported to be a focal point of the next phase, but Chang told host John Cardillo the core of China's unfair trade practices are just too fundamental to their economy to give them up for trade with the U.S.
"President Trump is going to push them," Chang said. "And we're going to see how they respond on this, which is absolutely fascinating, largely because not very many people think that Xi Jinping, the Chinese ruler, is willing to make compromises on what he considers the core of Chinese communism, which is a state dominated economy, subsidies, a lot of industrial policy, and all sorts of things that are not really compliant with China's trade obligations."
Chang is author of "The Coming Collapse of China," which predicted China's economic slump nearly two decades ago and pointed to the fall of its government under a sunken economy to be the next domino to fall.
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