The lobster industry`s turnover is still only 39% of the previous annual target, after Maine residents, who lost a large customer (China) to Canada, were loudly deplored. (Beijing encouraged the deferral by reducing its tariffs on lobsters from Canada and other countries, while calling for higher tariffs on U.S. lobsters from 2018.) U.S. wheat is also struggling and sorghum is showing signs of recovery, but it is still only 73% of its annual target. What impact will this have on U.S. economic policy toward China, given our long-term trade and investment interests and the lack of knowledge between the economic and political changes highlighted in other East Asian countries? First, we must abandon a policy that has awakened in China the perception that the United States is trying to delay, or even block, the rise of China as a major economic power. This means that the new government should abandon sanctions that are more than a decade old, which remain a legacy of the 1989 Tiananmen crisis. These include the requirement that the U.S. Director vote or refrain from voting against all loans to China on the World Bank`s Board of Directors that do not meet only basic human needs, and the selective retention of loans and loan guarantees from the export bank for non-economic or non-technical reasons.
In recent years, the United States has been the only country in the world that has yet to implement such sanctions. U.S. opposition to World Bank Loans from China does not block these loans, and as part of a waiver program, some of the bank`s export-import loans have advanced. These sanctions are therefore largely symbolic. They send the wrong message that the United States is trying to delay or block China`s emergence as a major economic power. “I think it may be a useful pause in the downward spiral of U.S.-China relations,” Susan Shirk, a professor at the University of California, said of the trade deal. The president`s approach could pay off politically. He will embark on a re-election campaign with China`s commitment to strengthen its intellectual property protection, make large purchases of U.S.
products and follow other economic changes that will benefit the U.S. economy. Domestic coverage of the trade war is censored in China. While news agencies are allowed to cover the conflict, their reports are subject to restrictions; The South China Morning Post reported that Chinese media employees were ordered not to “overestimate” the trade war, while a New York Times article reported that state news agencies had tried to promote the official line, with the authorities limiting the use of the term “trade war.”  Social media posts about the conflict are also subject to censorship.   Ms. Vetter stated that the agreement was surprisingly reciprocal in this area and granted concessions that China wanted to ensure that its exports to the United States were treated more equitably.