[CTC] Ross suggests coronavirus 'will help to accelerate the return of jobs' to US

Fri Jan 31 05:04:31 PST 2020

Racist, stupid, greedy, disgusting.  Four articles below…

https://thehill.com/homenews/administration/480644-ross-suggests-coronavirus-in-china-will-help-return-jobs-to-north <https://thehill.com/homenews/administration/480644-ross-suggests-coronavirus-in-china-will-help-return-jobs-to-north>

Ross suggests coronavirus 'will help to accelerate the return of jobs' to US
By Justin Wise
01/30/2020
Commerce Secretary Wilbur Ross <https://thehill.com/people/wilbur-ross> on Thursday suggested that the outbreak of a deadly coronavirus in China would help "accelerate" the return of jobs to the United States. 

Ross made the remarks after China's National Health Commission announced <https://thehill.com/policy/international/480633-death-toll-for-coronavirus-outbreak-rises-to-170> that the death toll from the virus had climbed to 170. China has also confirmed more than 7,700 cases of the virus, which has spread to several countries around the world, including the U.S., where there have been 5 confirmed cases as of Wednesday.

Speaking in an appearance on Fox Business, Ross said that he did not want to take "victory lap over a very unfortunate, very malignant disease," stating that every American's heart should go out to the victims of the virus, before noting that he thinks the virus could help boost jobs.

"The fact is, it does give businesses yet another thing to consider when they go through their review of their supply chains," Ross, who has served in the Trump administration since 2017, said.

"It’s another risk factor that people need to take account. I think it will help to accelerate the return of jobs to North America, some to U.S., probably some to Mexico as well," he added. 

Asked for further comment, a Commerce Department spokesperson told The Hill that Ross "made clear the first step is to bring the virus under control and help the victims of this disease."

"It is also important to consider the ramifications of doing business with a country that has a long history of covering up real risks to its own people and the rest of the world," the spokesperson said.

The outbreak of the coronavirus, which first appeared in the central Chinese city of Wuhan, could have a drastic impact on China, the second-largest economy in the world.

A state economist forecast earlier this month estimated that the spread of the virus would reduce the country's first quarter growth by 1 point, causing global stocks to drop and oil prices to fall, Reuters reported <https://www.reuters.com/article/us-china-health/china-virus-toll-rises-to-170-as-fear-grows-over-global-economic-hit-idUSKBN1ZS35G>.

U.S. Federal Reserve Chairman Jerome Powell said Wednesday <https://thehill.com/policy/finance/480551-fed-chairman-coronavirus-likely-to-hinder-economic-growth-in-china> that the virus would likely disrupt economic growth in east Asia. He added that its effects could be felt throughout the world amid "travel restrictions and business closures."

“There will clearly be implications, at least in the near term, for Chinese output, and I guess for some of their closest neighbors, and we'll just have to see what the effect is globally," he said.

The White House on Wednesday announced <https://thehill.com/policy/healthcare/480627-white-house-announces-task-force-to-monitor-coronavirus> the formation of a task force to monitor the coronavirus. Press Secretary Stephanie Grisham <https://thehill.com/people/stephanie-grisham> said that the team had been meeting every day this week as part of an effort to monitor and contain the disease.

"The risk of infection for Americans remains low, and all agencies are working aggressively to monitor this continuously evolving situation and to keep the public informed," Grisham said.

https://www.bloomberg.com/news/articles/2020-01-30/china-virus-raises-questions-about-its-trade-deal-with-u-s?sref=GodYho1D <http://r20.rs6.net/tn.jsp?f=001rYOAL4V_RF64n1u_6Y2aWnr7ir17yKcYxFvDs4ppTDp9HOrGuj0Vz2AcsseAqBu3lBDLdiBj0TpnRwmdztJOqpXvm36l1M_7oW9L0bJlNj5muuXnMkF2Dhll6BmZYRwTE8Uw-9wu1EEwRQIn8SZE6n1VH91YAQVIX7_iWssDlbwIN1AX-_WPOD_otuc-qjFmKo0T_rYCwK57_PNpB3M0nODUBPkiPTIcEygXC0yi6C0H33R9Le__Om747iQRLAlXzMptq-gfk9_reOt0VNIwa0048_1yJTxt&c=xyNjFylbAuT3w4keRKnMH3MgD7PVBEDQjLLaZ9FD6PnzjITbFfOA2Q==&ch=S_pnc42802IgHsecQQykHCF9SyyuiwmQykfBe6cBnisjy4mql1kO6A==>

Virus Raises Worry China Won’t Meet U.S. Trade-Deal Pledges
 01/30/2020

China’s promises in its phase-one trade deal to increase purchases from the U.S. -- which experts already were calling unrealistic -- will be even tougher to fulfill now that a new virus is hammering demand and interfering with supply chains.

In the first year of the deal, which takes effect in mid-February, China committed to buy an extra $76.7 billion worth of American goods beyond what it purchased in 2017, and an additional $123.3 billion in the second year. The agreement signed just over two weeks ago marked an easing in tensions that flared as the world’s two largest economies waged a trade war.

As the novel coronavirus spreads, attention is focusing on a part of the agreement which states the U.S. and China will consult “in the event that a natural disaster or other unforeseeable event” delays either nation from complying with the agreement.

“It obviously is going to have some ramifications economy-wide, which we hope will not inhibit the purchase goal that we have for this year,” U.S. Agriculture Secretary Sonny Perdue said Wednesday. “We’ll have to look ahead and see.

But the honest answer is we just don’t know yet. But we’re hoping for a very quick conclusion.”

To reach promised purchases, Chinese imports will need to jump

Source: U.S. Census Bureau, U.S. Trade Representative, Bloomberg estimate

The deadly virus may push jobs back to the U.S., Commerce Secretary Wilbur Ross said.

“Well, first of all, every American’s heart has to go out to the victims of the coronavirus,” Ross said during an interview on Fox Business Network Thursday. “I don’t want to talk about a victory lap over a very unfortunate, very malignant disease. But the fact is, it does give businesses yet another thing to consider when they go through their review of their supply chain, on top of all the other things.”

“I think it will help to accelerate the return of jobs to North America. Some to U.S. Probably some to Mexico as well.”

The health crisis has hit financial and commodity markets in recent days.

China’s yuan sank through 7 per dollar Thursday, breaching that threshold for the first time this year. The spread between U.S. 10-year Treasury yields and three-month OIS rates turned negative, inverting the yield curve for the first time since October. Futures prices for soybeans -- a key component of China’s import commitments in the deal -- fell for an eighth straight day, the longest skid in almost two months.

Meanwhile, economists are ratcheting up their estimates of the blow to economic growth. Nomura International Ltd. says the drag could exceed that seen during the SARS outbreak of 2003.

What Our Economists Say
The widening outbreak will clearly be disruptive to Chinese economic activity via falling sentiment and lost production days. The viability of China actually being able to satisfy the import quotas which were part of the phase-one trade agreement were already largely untenable, weaker economic growth will make this even more so. Unless this becomes far worse, I don’t think Trump is going to give the Chinese a pass on this. He needs to run on strong economic growth.

--Carl Riccadonna

So far, the world’s two biggest economies seem more focused on measures to prevent the spread of the disease.

“The U.S. and China are in close coordination on the coronavirus and protecting the public health of both countries,” White House spokesman Judd Deere said. “The president appreciates President Xi’s cooperation.”

https://www.cnbc.com/2020/01/29/us-will-keep-tariffs-on-china-even-if-coronavirus-starts-hurting-growth-navarro.html <http://r20.rs6.net/tn.jsp?f=001rYOAL4V_RF64n1u_6Y2aWnr7ir17yKcYxFvDs4ppTDp9HOrGuj0Vz2AcsseAqBu3_g45k3QSCm229pFfW252EM-DGCx76yBWRnYwL3MoBhkQcqz1E7gbfTg8zgbMUam0CVMIr5GDz6E98T0VlKTa3ZBteKnuMiunDbXUofw-FdaTsPpAdv73qHAdMY7OjlWdF8Wv6Gy-FO1ouqLXMDgzb0_9L5OS1XagxJAHvsmbwxyNY12DvH5q_iDB_BqgeBd6NrI0RskgTMrR4ANe5URMWw==&c=xyNjFylbAuT3w4keRKnMH3MgD7PVBEDQjLLaZ9FD6PnzjITbFfOA2Q==&ch=S_pnc42802IgHsecQQykHCF9SyyuiwmQykfBe6cBnisjy4mql1kO6A==>

US will keep tariffs on China even if coronavirus starts hurting growth, Trump advisor Peter Navarro says
By Kevin Staniewicz
 01/29/2020

White House trade adviser Peter Navarro listens to a news conference about a presidential executive order relating to military veterans outside of the West Wing of the White House in Washington, March 4, 2019.

White House trade advisor Peter Navarro pushed back Wednesday against the idea that the U.S. would remove tariffs on Chinese imports if the deadly coronavirus begins to weigh on China’s economy.

“That’s a spin that’s coming right out of Wall Street, and it really, I think, it does a disservice to this whole crisis to bring that into the discussion,” Navarro said on CNBC’s “Closing Bell.”

Navarro was responding to a question from CNBC’s Carl Quintanilla, who asked whether a tariff rollback was on the table if China was abiding by the terms of the “phase one” trade deal but started to see its economy hurt by the coronavirus.

The flu-like coronavirus has now killed at least 132 people and infected more than 6,150 people worldwide, but China is the epicenter of the outbreak.

Companies in China have shut down stores, factories and closed offices as the country works to contain the spread of the virus. Some have warned of severe disruption to supply chains in China, with at least American CEO predicting the impact could last up to six months.

Navarro’s comments on CNBC come hours after President Donald Trump signed into law the new version of the North American Free Trade Agreement, making Canada the final country that needs to ratify it.

The U.S. Senate approved the United States-Mexico-Canada Agreement on Jan. 16, one day after Trump formally signed a “phase one” agreement with China.

The U.S. and China have been engaging in a long-running trade war in which each side has placed billions of dollars’ worth of tariffs on each other’s goods.

The “phase one” deal was considered the first step in larger negotiations to reach a trade détente.

While it contained measures on issues such as intellectual property theft and Chinese market access, it did not include a whole-scale rolling back of tariffs, which segments of the business community want to see.

“We’re leaving tariffs on, but I will agree to take those tariffs off if we are able to do ‘phase two,’” Trump said at the time.

On the subject of removing tariffs due to the coronavirus, Navarro said, “Let’s remember why the tariffs are in place.”

“The tariffs are in place because China engages in massive unfair subsidies. They use their state-owned enterprises to put American companies and workers out of business,” he said. “And the tariffs also ensure that we come back for phase two.”

 https://www.vox.com/2020/1/30/21115189/wilbur-ross-coronavirus <https://www.vox.com/2020/1/30/21115189/wilbur-ross-coronavirus>

Wilbur Ross sees the coronavirus outbreak as a moneymaking opportunity for the US
By Aaron Rupar
01/30/2020

During a Thursday morning appearance on Maria Bartiromo’s Fox Business show, Commerce Secretary Wilbur Ross made a ghoulish effort to find an “America First” silver lining to the Chinese coronavirus <https://www.vox.com/science-and-health/2020/1/23/21079069/what-is-coronavirus-wuhan> that has already killed 170 people and infected nearly 8,000 more, and threatens to become a global pandemic.

In short: Ross thinks it’s potentially a good thing for the US economy.

Asked by Bartiromo if the new coronavirus puts economic growth at risk, Ross responded by offering thoughts and prayers to those directly affected, before saying, “I don’t want to talk about a victory lap over a very unfortunate, very malignant disease.” But he then proceeded to take a victory lap by making a case that the outbreak might present a moneymaking opportunity in the United States.

“The fact is, it does give business yet another thing to consider when they go through their review of their supply chain,” said Ross. “It’s another risk factor that people need to take into account. So I think it will help to accelerate the return of jobs to North America.”

“Ah, that’s a good point,” Bartiromo replied.

Ross’s economic analysis is dubious at best. SARS, for instance, wiped nearly $40 billion off world markets <https://www.nbcnews.com/business/markets/sars-wiped-40-billion-world-markets-what-will-coronavirus-do-n1122151> in 2002 and 2003, and the new coronavirus has already infected more people <https://nypost.com/2020/01/29/number-of-coronavirus-infections-in-china-surpasses-sars-epidemic/> in China than SARS did. A similar global slump would undoubtedly negatively impact the United States, even if it isn’t hit as hard as other countries, much like Trump’s trade war with China has <https://www.reuters.com/article/us-imf-worldbank-trade/fallout-from-trumps-trade-wars-felt-by-economies-around-the-world-idUSKBN1WY0PZ>.

But an economic evaluation of Ross’s claim is ultimately beside the point. What matters is that a top Trump administration official barely hesitated before reducing a global outbreak that has already killed nearly 200 humans and could kill thousands more to a business opportunity. In that way, Ross’s comments represent a distillation of the zero-sum worldview Trump has repeatedly articulated about how what’s bad for China is good for the US <https://www.politico.com/magazine/story/2019/08/21/trump-china-economy-227633> — although it appears economic hostilities have ceased at least for the moment due to the trade deal the administration and China announced <https://www.vox.com/world/2020/1/15/21064070/trump-china-phase-one-trade-deal-signing> earlier this month.

Ross has a penchant for putting his foot in his mouth. Almost exactly one year ago, he generated similarly negative headlines for the administration when he downplayed the impact of the then-ongoing government shutdown by going on CNBC and suggesting affected workers should go further in debt <https://www.vox.com/2019/1/24/18195782/wilbur-ross-shutdown-workers-loans-food-banks> to make ends meet.

“The 30 days of pay that some people will be out, there’s no real reason why they shouldn’t be able to get a loan against it,” Ross said.

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

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