US Fires Latest Shot In China Trade War: Warns Beijing Is “Threat To World’s Trading System”

Monday, September 18, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Sep 18, 2017

It’s been at least a few weeks since the topic of trade war with China dominated the news flow, so moments ago U.S. Trade Representative Robert Lighthizer decided to poke that particular wound, in during a speech in Washington said that “China’s coordinated effort to create national champions and distort markets is a threat to the world’s trading system.”

Some headlines from his speech, via Reuters:

USTR LIGHTHIZER SAYS THERE IS A GROWING FEELING AMONG VOTERS THAT GLOBAL TRADING SYSTEM NOT FAIR TO U.S. WORKERS
USTR LIGHTHIZER SAYS “WE WILL HAVE CHANGE IN TRADE POLICY”
USTR LIGHTHIZER SAYS U.S. CAN COMPETE IF CONDITIONS ARE FAIR
USTR LIGHTHIZER SAYS HE AND TRUMP BELIEVE U.S. SHOULD BE MORE PROACTIVE IN TRADE POLICY, DEMAND RECIPROCITY
USTR LIGHTHIZER SAYS HE AND TRUMP BELIEVE THAT TRADE DEFICITS MATTER
USTR LIGHTHIZER SAYS SCALE OF CHINA’S EFFORT TO SUBSIDIZE INDUSTRIES IS A THREAT TO WORLD TRADING SYSTEM
USTR LIGHTHIZER SAYS 301 PROBE INTO CHINA’S INTELLECTUAL PROPERTY PRACTICES COULD LEAD TO WTO CASES

Bloomberg provides some further details, quoting the US trade rep as saying that “WTO isn’t equipped to deal with the problem, and the U.S. must find other ways to defend our workers, companies and economic system.” As a result, Lighthizer says “we will have change on trade policy”, a statement that certainly did not come from the Goldman circle of close Trump advisors.

He also said that “the real policy difference is not over whether we want efficient markets, but how do we get them” adding that the US “must be proactive, as years of talking about the problems haven’t worked” and that “we must demand reciprocity.”

Finally, the US trade rep said that he agrees with President Trump that trade deficits matter and that he agrees macroeconomic factors have an impact on trade deficits, but terms of trade also matter.

The Rest…HERE

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