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The arrest and possible extradition of a Chinese managing director highlights continued trade tensions between the US and China, which, according to national security adviser John Bolton, will be a major topic of negotiation over the next three months.
These tensions contributed to another at Rollercoaster Day on Wall Street. The Dow Jones Industrial Average fell more than 700 points on Thursday but closed again, closing below 80 points. This followed a decline of 799 points in the Dow on Tuesday.
Meng Wanzhou, Chief Financial Officer of China's Huawei Technologies, was arrested on Saturday in Canada at the request of the US authorities and may face extradition to the United States. In an interview with Steve Inskeep, NPR, Bolton did not dismiss the reasons for her arrest, but said the US had spent a long time thinking about what she considered to be theft of her company's technological know-how.
"You should not blindly rob States as stealing the intellectual property of their competitors as a national matter," Bolton said of the NPR's "Morning Edition." "Huawei is a company we were worried about, there are others."
Huawei is one of the world's leading manufacturers of smart phones and telecommunications equipment. Meng is the daughter of the company founder. She is expected to appear in Vancouver on Friday for bail hearing. The Department of Justice also refused to comment on the reasons for Meng's arrest.
It was imprisoned on the same day as President Trump and Chinese President Xi Jinping held a working dinner in Buenos Aires, Argentina.
The two leaders came out of this session and signaled a truce in their trade war. Trump agreed to delay additional tariffs on Chinese imports for 90 days while negotiations on China's trading practices continued.
"The main thing is to protect American jobs and American businesses from the unfair treatment they receive from the Chinese government have, "Bolton said. "They do not beat other countries in fair competition, they steal from them."
Vice President Pence also warned China of China's growing self-assurance in a speech to the Hudson Institute this fall.
hoped that economic liberalization would lead China to a greater partnership with us and the world, "Pence said." Instead, China has opted for economic aggression, which in turn has encouraged its growing military. "
Bolton shares these views in general, but emphasized that the US is not trying to limit China's economic growth.
"I do not believe that national security requires this at all, "said Bolton," which, in my view, requires national security, is that the economic growth with which China is blessed is governed by the rules. "
He reiterated the Vice President's skepticism that wealth would automatically lead to political change in China.
"I heard years ago," Let the Chinese economy go Little is growing and you will see democracy spreading throughout the country, "said Bolton. "We know today that this connection is anything but safe."
"I am a Customs Officer"
The financial markets initially welcomed the Armistice of Trump-Xi, and on Monday the shares rallied. But soon doubts crept in that it would take time, especially after Trump tweeted his support for tariffs on Tuesday .
"I am a customs officer," wrote Trump. "When people or countries come in to invade the great wealth of our nation, I want them to pay the privilege of it, it will always be the best way to maximize our economic power, and we are now taking $ billion into it Tariffs. "
…. I am a tariff officer. When people or countries come in to invade the great wealth of our nation, I want them to pay for it. It will always be the best way to maximize our economic power. Right now we're raising $ billions in tariffs. MAKE AMERICA RICH AGAIN
– Donald J. Trump (@realDonaldTrump) December 4, 2018
In fact, Trump's tariffs on Chinese imports cost American companies and consumers in October, the first month in which these tariffs arose Analysis of the US Census Data of the Trade Partnership, an economic research company, in full force.
"Americans pay these taxes and they pay more than ever," said former MP Charles Boustany. R-La., Who serves as the spokesman for an interest group, Tariff's Hurt the Heartland.
Boustany notes that tariffs on tariffs on China did not deter imports or promote domestic production. China's duty-paid imports increased 2 percent in October while exports of China's retaliatory tariffs plummeted 42 percent.
Combined with steel levies. For aluminum and other imports, the total price of Trump's administration tariffs in October was $ 2.8 billion. Thus, the monthly customs revenue of the federal government fell to a record level of 6.2 billion US dollars.
Rules of Engagement
Tariffs could be even higher if the US and China failed to reach agreement on sensitive intellectual property issues and enforced technology transfer. Bolton said business people are rightly concerned.
"Prudent people should look at China's functioning and wonder if trade and investment in an economy that uses its trading partners and jeopardizes their intellectual property. That's something they want to get involved in," he said.
Bolton also expressed skepticism about North Korea's willingness to abandon its banned nuclear program, even as it commits itself to a second personal meeting between the President and Kim Jong Un
"President Trump is trying to give the North Koreans a chance commitments made at the Singapore Summit, "Bolton said. "He opened the door for her, you have to go through the door."