<div dir="ltr"><header class="gmail-article-header gmail-clearfix" style="box-sizing:border-box;display:block;zoom:1;padding-bottom:0.5em;border-bottom:5px solid rgb(102,102,102);text-decoration-style:initial;text-decoration-color:initial"><h1 class="entry-title gmail-single-title" style="background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;box-sizing:border-box;margin:0.2em 0px;line-height:1.3em"><font size="2"><a href="https://fpif.org/actually-trump-loves-chinese-goods-so-long-as-they-make-him-richer/">https://fpif.org/actually-trump-loves-chinese-goods-so-long-as-they-make-him-richer/</a></font><br></h1><h1 class="entry-title gmail-single-title" style="background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;color:rgb(51,51,51);font-family:"Droid Serif","Libre Baskerville",Georgia,Cambria,"Times New Roman",Times,serif;font-size:2.8em;box-sizing:border-box;margin:0.2em 0px;font-weight:700;line-height:1.3em">Actually, Trump Loves Chinese Goods — So Long as they Make Him Richer</h1><p class="gmail-lede gmail-print-yes" style="color:rgb(102,102,102);font-family:"Droid Serif","Libre Baskerville",Georgia,Cambria,"Times New Roman",Times,serif;font-size:1.4em;box-sizing:border-box;margin:0.5em 0px;font-weight:bold;line-height:1.4">Trump rallied to save a major Chinese firm right in the middle of a trade war of his own making. Why?</p><p class="gmail-byline gmail-vcard" style="color:rgb(153,153,153);font-family:"Helvetica Neue",Helvetica,Arial,sans-serif;font-size:1em;box-sizing:border-box;margin:0px;line-height:1.5;float:left"><span class="gmail-sep" style="box-sizing:border-box">By<span> </span></span><span class="gmail-author gmail-vcard" style="box-sizing:border-box"><a href="https://fpif.org/authors/peter-certo/" title="Peter Certo" rel="author" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none;font-weight:700">Peter Certo</a></span>,<span> </span><time class="gmail-updated" datetime="2018-05-30" style="box-sizing:border-box">May 30, 2018</time>.</p><div class="gmail-header-tools" style="color:rgb(51,51,51);font-family:"Droid Serif","Libre Baskerville",Georgia,Cambria,"Times New Roman",Times,serif;font-size:16px;box-sizing:border-box;float:right"><div class="gmail-header-share" style="box-sizing:border-box;display:inline-block"><span class="gmail-st_sharethis" style="box-sizing:border-box"></span></div><span> </span><div class="gmail-header-print" style="box-sizing:border-box;display:inline-block"><div class="gmail-printfriendly gmail-pf-alignleft" style="box-sizing:border-box"><a href="https://fpif.org/actually-trump-loves-chinese-goods-so-long-as-they-make-him-richer/?utm_source=newsletter&utm_medium=email&utm_campaign=5-31-18#" rel="nofollow" class="gmail-noslimstat" title="Printer Friendly, PDF & Email" style="box-sizing:border-box;color:rgb(0,0,0);text-decoration:none;border:none;font-size:12px"><img src="https://cdn.printfriendly.com/icons/printfriendly-icon-md.png" alt="Print Friendly, PDF & Email" style="box-sizing: border-box; border: 0px; margin: 5px 0px 0px; max-width: 100%; height: auto; vertical-align: top; display: inline;">Print</a></div></div></div></header><section class="entry-content gmail-clearfix" style="box-sizing:border-box;display:block;zoom:1;font-size:16px;line-height:1.9;padding-bottom:1em;border-bottom:5px solid rgb(102,102,102);color:rgb(51,51,51);font-family:"Droid Serif","Libre Baskerville",Georgia,Cambria,"Times New Roman",Times,serif;text-decoration-style:initial;text-decoration-color:initial"><div class="gmail-pf-content" style="box-sizing:border-box"><div id="gmail-attachment_33524" class="gmail-wp-caption gmail-aligncenter" style="box-sizing:border-box;background:rgb(249,249,249);border:1px solid rgb(221,221,221);padding:5px;margin:1.5em auto 0.5em;max-width:100%;display:block;clear:both"><img class="gmail-size-large gmail-wp-image-33524" src="https://yp6uap4od3sncuze-zippykid.netdna-ssl.com/wp-content/uploads/2018/05/shutterstock_588862193-722x482.jpg" alt="donald-trump-china-manufacturing-industry-trade-war" style="box-sizing: border-box; border: 0px; margin: 0px; max-width: 100%; height: auto; width: inherit;"><p class="gmail-wp-caption-text" style="box-sizing:border-box;margin:0px;font-size:0.85em;line-height:1.3;text-align:center">Shutterstock</p></div><p style="box-sizing:border-box;margin:1em 0px"><em style="box-sizing:border-box;font-style:italic">This article was jointly produced by<span> </span><a href="http://fpif.org/" title="Foreign Policy In Focus" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">Foreign Policy In Focus</a><span> </span>and<span> </span><a href="http://inthesetimes.com/" title="In These Times" target="_blank" rel="noopener noreferrer" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">In These Times</a></em><em style="box-sizing:border-box;font-style:italic">.</em></p><p style="box-sizing:border-box;margin:1em 0px">Donald Trump built no small part of his political brand railing against Chinese industry—so much so that <em style="box-sizing:border-box;font-style:italic">The Huffington Post </em>once published a <a href="https://www.youtube.com/watch?v=RDrfE9I8_hs" target="_blank" rel="noopener" title="supercut" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">supercut</a> of the president sneering the word “China” dozens and dozens of times, for three full minutes.</p><p style="box-sizing:border-box;margin:1em 0px">While Trump’s highly charged language about China “raping our country” showcased the president’s usual xenophobia, the part about lost jobs spoke to real economic pain that other politicians appeared to ignore. The message played well in parts of the country—like my home state of Ohio, and much of the Midwest besides—that suffered grievously as prosperous industries pulled up their stakes and moved factories to other countries, China chief among them.</p><p style="box-sizing:border-box;margin:1em 0px">Despite wild policy fluctuations on other fronts, Trump has been uncharacteristically consistent on this point. For the last few months he’s been stoking a possible trade conflict with China, threatening tariffs on up to <a href="https://www.vox.com/world/2018/5/14/17352088/trump-zte-china-trade-war" target="_blank" rel="noopener" title="$150 billion worth" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">$150 billion worth</a> of Chinese goods and drawing Chinese threats to penalize U.S. industries in turn (cannily, often from <a href="https://www.washingtonpost.com/news/politics/wp/2018/04/04/chinas-retaliatory-tariffs-will-hit-trump-country-hard/" target="_blank" rel="noopener" title="the very regions" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">the very regions</a> that supported Trump in the 2016 election).</p><p style="box-sizing:border-box;margin:1em 0px">The president even that tweeted he was looking forward to a trade war. (They’re “<a href="https://www.cnbc.com/2018/03/02/trump-trade-wars-are-good-and-easy-to-win.html" target="_blank" rel="noopener" title="easy to win" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">easy to win</a>,” he said.) But within a few weeks, he seemed to roll over, suspending most of those tariffs while trade talks were underway. “We’re putting the trade war on hold,” Treasury Secretary Steve Mnuchin told <em style="box-sizing:border-box;font-style:italic">Fox News</em>.</p><p style="box-sizing:border-box;margin:1em 0px">Trump initially claimed that he’d gotten the Chinese to decrease their trade surplus by up to “$200 billion”—a claim the Chinese government flatly denied. By all appearances, Beijing simply made <a href="https://www.washingtonpost.com/news/wonk/wp/2018/05/20/china-is-winning-trumps-trade-war/?utm_term=.5d12e5397117" title="vague, unenforceable assurances" target="_blank" rel="noopener noreferrer" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">vague, unenforceable assurances</a> to purchase consumer goods they were probably going to buy anyway.</p><p style="box-sizing:border-box;margin:1em 0px">For this, China didn’t just get a reprieve on tariffs. It won a reprieve for a major Chinese corporation accused of running seriously afoul of U.S. sanctions.</p><p style="box-sizing:border-box;margin:1em 0px">If Trump wanted a boogeyman for his broadsides against Chinese industry, it would’ve been harder to come up with a better one than the Chinese phone maker ZTE. It’s China’s <a href="https://www.npr.org/sections/parallels/2018/05/15/611218144/as-u-s-china-trade-talks-begin-ztes-future-is-in-the-spotlight" target="_blank" rel="noopener" title="second-largest telecommunications firm" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">second-largest telecommunications firm</a>, a <a href="https://www.huffingtonpost.com/entry/trump-china-zte_us_5af9f701e4b0200bcab7fa66?utm_campaign=hp_fb_pages&utm_source=politics_fb&utm_medium=facebook§ion=politics&ncid=fcbklnkushpmg00000013" target="_blank" rel="noopener" title="third of which" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">third of which</a> is reportedly owned by state entities.</p><p style="box-sizing:border-box;margin:1em 0px">But ZTE is no ordinary competitor for American firms. It’s also been officially sanctioned by the U.S. government for selling goods with American-made parts to Iran and North Korea, and then lying about its efforts to address Washington’s complaints. Not only that, but some experts have worried that the company could be using its phones as surveillance devices. The U.S. military has even <a href="https://www.marketwatch.com/story/pentagon-says-stores-on-military-bases-cannot-sell-huawei-zte-phones-2018-05-02" target="_blank" rel="noopener" title="banned the sale of ZTE phones" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">banned the sale of ZTE phones</a> on military bases.</p><p style="box-sizing:border-box;margin:1em 0px">Those sanctions may have been draconian, and perhaps the military’s concerns were paranoid. But the cut-and-dry nature of the violations gave the administration a chance to exercise the sort of corporate oversight it often professes but seldom practices. This spring, Trump’s own Commerce Department announced a seven-year ban on U.S. companies selling ZTE component parts, like the microchips it desperately needs. The move was expected to put the giant out of business.</p><p style="box-sizing:border-box;margin:1em 0px">But then, in a move that <em style="box-sizing:border-box;font-style:italic">The Washington Post </em><a href="https://www.washingtonpost.com/business/economy/trumps-zte-tweet-sows-confusion-before-trade-talks-with-china/2018/05/14/d2cd049c-57b4-11e8-8836-a4a123c359ab_story.html?utm_term=.264def1d834e" target="_blank" rel="noopener" title="reports" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">reports</a> went completely outside the usual White House policy channels, Trump made a stunning reversal: He was ordering Commerce Secretary Wilbur Ross to ease the sanctions. And more astonishingly, Trump tweeted that he wanted ZTE “to get back into business, fast”—because there were “too many jobs in China lost.”</p><p style="box-sizing:border-box;margin:1em 0px">In addition to being a policy 180, this was extremely off-brand. The president boastfully tweeting about saving jobs in China was, arguably, far more bizarre than his typical <em style="box-sizing:border-box;font-style:italic">Fox and Friends </em><a href="https://www.politico.com/magazine/story/2018/01/05/trump-media-feedback-loop-216248" target="_blank" rel="noopener" title="liveblogs" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">liveblogs</a>, or even dada-esque masterpieces like “<a href="https://www.nytimes.com/2017/05/31/us/politics/covfefe-trump-twitter.html" target="_blank" rel="noopener" title="covfefe" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">covfefe</a>.” (Remember that?) And right in the middle of a possible trade war of his own making, too.</p><p style="box-sizing:border-box;margin:1em 0px">The question, naturally, is why?</p><p style="box-sizing:border-box;margin:1em 0px">Mainstream media outlets dutifully offered seemingly plausible explanations. <em style="box-sizing:border-box;font-style:italic">The Washington Post </em><a href="https://www.washingtonpost.com/business/economy/trumps-zte-tweet-sows-confusion-before-trade-talks-with-china/2018/05/14/d2cd049c-57b4-11e8-8836-a4a123c359ab_story.html?utm_term=.264def1d834e" target="_blank" rel="noopener" title="reported" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">reported</a> that “In exchange for easing restrictions on ZTE, U.S. officials are pressing China to relax tariffs on agricultural products and allow a U.S. technology company, Qualcomm, to acquire NXP Semiconductors.” So perhaps it was a simple concession in hopes of getting a better deal?</p><p style="box-sizing:border-box;margin:1em 0px"><em style="box-sizing:border-box;font-style:italic">NPR</em>, meanwhile, quoted an expert who suggested that banning U.S. microchip exports to ZTE would only encourage China to develop its own advanced technology, which worried some national security folks. Zhejiang University’s Douglas Fuller <a href="https://www.npr.org/sections/parallels/2018/05/15/611218144/as-u-s-china-trade-talks-begin-ztes-future-is-in-the-spotlight" target="_blank" rel="noopener" title="explained" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">explained</a> that the ban was “antagonizing China to double down on more techno-nationalist import substitution policies,” which (I guess) sounds like a problem.</p><p style="box-sizing:border-box;margin:1em 0px">Others speculated that it was an attempt to get Chinese help with the upcoming North Korea summit, which Trump subsequently made a big show of canceling.</p><p style="box-sizing:border-box;margin:1em 0px">Perhaps all of these accounts were too generous. In fact, there might be a far simpler explanation for the reversal, one much more on-brand with Trump practices to date: plain old self-dealing.</p><p style="box-sizing:border-box;margin:1em 0px">Just 72 hours prior to Trump’s reversal on ZTE, <em style="box-sizing:border-box;font-style:italic">The Huffington Post </em><a href="https://www.huffingtonpost.com/entry/trump-china-zte_us_5af9f701e4b0200bcab7fa66?utm_campaign=hp_fb_pages&utm_source=politics_fb&utm_medium=facebook§ion=politics&ncid=fcbklnkushpmg00000013" target="_blank" rel="noopener" title="reports" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">reports</a>, the Chinese government—which, recall, also owns entities controlling at least a third of ZTE—made a $500 million loan to some Trump-branded properties in Indonesia. And Chinese banks promised another $500 million to the same. The Trump Organization has acknowledged the deal but refused to comment, while a White House spokesman asked about the deal <a href="https://www.vox.com/policy-and-politics/2018/5/15/17355202/trump-zte-indonesia-lido-city" target="_blank" rel="noopener" title="said simply" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">said simply</a>, “I’ll have to refer you to the Trump Organization.”</p><p style="box-sizing:border-box;margin:1em 0px">It also probably didn’t hurt that during the very same week, China approved <a href="https://www.nytimes.com/2018/05/28/business/ivanka-trump-china-trademarks.html" title="seven new trademarks" target="_blank" rel="noopener noreferrer" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">seven new trademarks</a> for Ivanka Trump, Trump’s daughter and White House advisor.</p><p style="box-sizing:border-box;margin:1em 0px">Viewed in this light, Trump’s ZTE deal feels like far less of a reversal. It’s <a href="https://www.vox.com/2016/12/9/13799904/trump-corruption-conflict-of-interest" target="_blank" rel="noopener" title="perfectly consistent" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">perfectly consistent</a> for a president who’s praised President Rodrigo Duterte of the Philippines — whose drug war has killed <a href="https://www.aljazeera.com/news/2018/02/senator-rodrigo-duterte-drug-war-killed-20000-180221134139202.html" target="_blank" rel="noopener" title="over 20,000" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">over 20,000</a> people, yet whose capital also hosts an <a href="https://www.washingtonpost.com/world/asia_pacific/the-trump-tower-manila-shows-why-trump-can-never-truly-separate-himself-from-his-brand/2017/06/12/28701dfe-3a46-11e7-a59b-26e0451a96fd_story.html?utm_term=.dbad257523a7" target="_blank" rel="noopener" title="upcoming Trump Tower" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">upcoming Trump Tower</a> (the developer, in turn, is Duterte’s <a href="https://www.vox.com/2016/12/9/13799904/trump-corruption-conflict-of-interest" target="_blank" rel="noopener" title="special envoy" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">special envoy</a> to Trump). Or for a president with extensive potential conflicts in <a href="http://www.bbc.com/news/world-us-canada-38069298" target="_blank" rel="noopener" title="the United Arab Emirates" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">the United Arab Emirates</a>, which happens to be enjoying U.S. support as it conducts (with Saudi Arabia) a devastating U.S.-backed war in nearby Yemen.</p><p style="box-sizing:border-box;margin:1em 0px">Or, for that matter, a president who signed a tax plan <a href="https://www.counterpunch.org/2017/09/22/trumps-tax-plan-a-billion-or-three-for-guys-like-him/" target="_blank" rel="noopener" title="seemingly tailor-made" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">seemingly tailor-made</a> to save himself billions of dollars.</p><p style="box-sizing:border-box;margin:1em 0px">Former White House ethics lawyer Richard Painter <a href="https://www.huffingtonpost.com/entry/trump-china-zte_us_5af9f701e4b0200bcab7fa66?utm_campaign=hp_fb_pages&utm_source=politics_fb&utm_medium=facebook§ion=politics&ncid=fcbklnkushpmg00000013" target="_blank" rel="noopener" title="calls" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">calls</a> the ZTE episode “yet another violation of the emoluments clause of the Constitution,” which bans the president from taking money from foreign governments. If that feels quaint to point out at this point, it’s no less quaint to recall that Trump first pledged to divest himself of his Trump Organization holdings, and then <a href="https://www.forbes.com/sites/chasewithorn/2017/01/11/donald-trump-will-hand-over-business/" target="_blank" rel="noopener" title="backtracked" style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">backtracked</a>. (And then pledged not to open any new foreign business while he was in office, and then <a href="http://www.msnbc.com/rachel-maddow-show/trumps-no-foreign-deals-pledge-came-asterisk" target="_blank" rel="noopener" title="backtracked " style="box-sizing:border-box;color:rgb(12,116,166);text-decoration:none">backtracked </a>on that too.)</p><p style="box-sizing:border-box;margin:1em 0px">The ZTE case is ripe with Trump’s favorite punching bags—China, Iran, North Korea. It’s low-hanging fruit for his complaints about trade as well as national security. So if Trump’s not looking out for American industry in this politically easiest of cases, or even heeding his own leery military, you can bet he’s not looking out for out-of-work factory linemen in Michigan, Ohio, or Pennsylvania either.</p><p style="box-sizing:border-box;margin:1em 0px">He’s looking out, as always, for the gaudy letters emblazoned on the front of his tacky hotels.</p></div><div class="gmail-sharedaddy gmail-sd-sharing-enabled" style="box-sizing:border-box;clear:both"><div class="gmail-robots-nocontent gmail-sd-block gmail-sd-social gmail-sd-social-official gmail-sd-sharing" style="box-sizing:border-box"><h3 class="gmail-sd-title" style="box-sizing:border-box;font-size:9pt;margin:0px 0px 1em;font-weight:700;display:inline-block;line-height:1.2">Share this:</h3><div class="gmail-sd-content" style="box-sizing:border-box"><ul style="box-sizing:border-box;margin:0px 0px 0.7em;padding:0px;list-style:none;line-height:25px"><li class="gmail-share-print" 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dir="ltr">Manuel Pérez-Rocha <div>Associate Fellow </div><div>Institute for Policy Studies </div><div><span style="font-family:Roboto,arial,sans-serif;font-size:13px">1301 Connecticut Ave NW #600, Washington, DC 20036</span><br></div><div><i><font color="#33ccff"><b>More than 50 years of turning ideas into action! </b></font></i></div><div>Cel. 240-838-6623</div><div><a href="http://www.ips-dc.org" target="_blank">www.ips-dc.org</a></div><div><a href="http://www.ips-dc.org/issues/trade/" target="_blank">http://www.ips-dc.org/issues/trade/</a><br></div><div>Follow me on Twitter @ManuelPerezIPS</div><div><br></div><div><br></div><div><br></div><div> </div></div></div></div></div></div></div></div></div></div></div></div>
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