What do americans need to do business in China?


NPR’s Mary Louise Kelly talks with Claire Reade of the center for strategic and international studies on the significance of the latest round of tariffs on u.s.-china trade relations.
To talk more about this looming trade war, we turn to Claire Reid. As an assistant trade representative to the Obama administration, she is responsible for developing U.S. trade policy with China. Claire, thank you for being here.
CLAIRE READE: it’s my pleasure.
Kelly: so give me some information about the week, and the U.S. and China are swinging back and forth. When we get home from work week, what’s your takeaway?
READE: I hope the United States looks forward to their response, because any Chinese observer will tell you that China does not want to negotiate from a weak position. China will certainly send a clear message immediately.
Kelly: the Chinese can’t respond in kind, because the U.S. won’t send $150 billion worth of goods to China, right?
READE: right, but the trade relationship is not just about the production and export of goods. There are a lot of things you don’t have to think about in terms of overall service. So it includes billions of dollars of travel. It also includes education.
Kelly: help me set up the negotiating table here. If the United States and China wants to sit down, it is still this week, we interviewed the hope of most people, may not come to the comprehensive trade war, America would bring to the table what kind of impact? ?
READE: I think the United States undoubtedly has some leverage. My concern is that the United States may have overestimated its leverage, because economists will tell you that if the United States to stop in the each product made in China exported from the United States market, it will be about 3% of the impact on China’s gross domestic product. So simple English means that the American market is not absolutely critical to China’s survival.
Kelly: let me ask you something. I mean, get up and walk to the other side of the table. How has China affected this situation?
READE: yes. It has an authoritarian government that allows everyone to get involved, so if the government tells them they need it, they can tolerate a lot of pain, such as loss of sales, loss of investment, etc. And China may think that the pressure of democracy and the volatility of the stock market could lead the us to come forward and strike a deal, rather than endure the consequences.
Kelly: so what’s the goal here? When the President began talking about trump on tariff into China as one of the first reason is to protect the intellectual property rights, to protect the American business people and trying to do business in China’s intellectual property rights of the company. How big is the problem?
READE: that’s a big problem.
Kelly: are these sanctions the right way to threaten America this week?
READE: the proposed sanctions are a shock to everyone. No one knows what we are facing, but everyone is paying attention, so the tariff is not the answer. They are wake-up calls.
Kelly: what’s the wake-up call?
READE: I want to wake up the Chinese understand it should try to make one change is not only the edge of economic behavior, but a greater change and a measurable meaningful shift, can be enforced.
Kelly: that’s Claire reed, a former assistant trade representative for the United States, now working at the center for strategic and international studies. Claire, thank you very much.
READE: my pleasure.