Sunday, November 11, 2018

US - China Trade Relations

The White House has warned Wall Street executives to stay out of the US-China economic negotiations. I agree with the White House here because the "greed is good" ethic should not extend to enriching yourself or your firm at the expense of what is right for your country. Force the CEO's of these firms to have to register as "foreign agents" if any and I mean any of the firms underlings tries to engage in this sideline type negotiations.

Imagine how the average investor will react if a firm like say Goldman Sachs is constantly referred to as "Goldman Sachs a registered foreign agent of China". Make it so because in my mind when I hear about these executives engaging in these sorts of things all I can think of Ellis from Die Hard. And remember how "helpful" Ellis was in that movie.

The efforts to make China play by the rules isn't just limited to President Trump's tariff. The US, the EU and Japan are also submitting proposals to the World Trade Organization to curb China's "cheating" when it comes to trade.

Finally, the election results on Tuesday also seem to indicate that voters in general are in support of the Trump Administration's battle vs China when it comes to trade. Honestly though I think that support may be overblown for the simple reason that the average voter is either not paying much attention or doesn't care. If they support or oppose Trump their reasons for doing so are pretty much baked in by this point and don't rest on him trying to finally reign in the Chinese.

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