China Narrows Scope for Trade Deal

The video discusses the dynamics of US-China trade negotiations, highlighting the importance of leverage and pragmatism. It explores China's strategy of seeking a limited deal, excluding key US complaints like subsidies and industrial policy. The discussion also covers the potential benefits for both countries, such as China's need for agricultural imports and the US's desire to avoid an economic slowdown before the 2020 election. The Japan-US deal is presented as a template for a limited agreement, emphasizing the importance of realistic first steps in trade negotiations.

What is a key strategy both the US and China are using as they enter negotiations?

• Building leverage

• Avoiding discussions

• Increasing tariffs

• Reducing exports

What significant aspect is China keeping off the table in the negotiations?

• Intellectual property rights

• Government subsidies and industrial policy

• Environmental regulations

• Military agreements

What recent deal is suggested as a template for a limited US-China agreement?

• US-India deal

• US-Mexico deal

• US-Japan deal

• US-Canada deal

Why might China be interested in US agricultural imports?

• To increase export tariffs

• To address the African swine fever impact

• To reduce industrial output

• To improve technological infrastructure

What is a concern for the US as it approaches the 2020 elections?

• Improving educational standards

• Reducing healthcare costs

• Avoiding an economic slowdown

• Increasing military spending