‘Patriotic’ pain in America from the trade war

Here are two views of the Trump administration’s handling of China and the trade war:

An American farmer says the U.S.-China trade war is really hurting in this CNN clip, “We’re in a free-fall out here.” Although he voted for Trump, he now believes the president’s approach to China is completely wrong.

The Atlantic’s James Fallows tweeted about the clip:

This is like what we heard from walnut / almond farmers in California. Short term hit is the collapse in prices, which is putting strain on families — Long term hit is switch to suppliers from other countries, because of “unreliability” of U.S. suppliers.

There’s a different reaction described in today’s edition of the New York Times Daily podcast, at around 20 minutes into the episode:

Natalie Kitroeff: I’ve had so many conversations…with workers and business owners all across the country. [They] see the fight between the U.S. and China as bigger and more important than the personal cost it might have to them in the short term. They value the fact that president Trump is willing to fight that fight. It’s patriotic.

Peter S. Goodman: That’s right. It’s part of why we should get our minds around the distinct possibility that this trade war will go on a long time.

On Monday, we noted that the government had begun a new, nationalistic propaganda campaign to prop up support for China against the U.S., and that the campaign was working.

At The China Project, we’ve been counting July 6, 2018 — when the first Trump tariffs went into place — as day one of the trade war. Three hundred and fourteen days later, I see no end in sight.

Below are links to further reporting on the trade war and related U.S.-China tensions.

Effects on U.S. economy

• Trade war puts Chinese tourists off US / SCMP
  “The U.S. slid to tenth spot in the list of China’s top overseas destinations in the week-long [October National Day] holiday in 2018 from fifth the previous year, according to Ctrip. In the recently-concluded Labour Day holiday in early May, the U.S. ranked as the ninth most popular travel destination for Chinese tourists, down from fifth spot last year.”
• U.S. consumers start to pay price of trade war with China / FT (paywall)
  “Economists fear households and retailers face mounting burden as prospect of rising tariffs mounts.”
• China’s LNG tariff threatens Trump energy export goal / FT (paywall)
  “A 25 percent levy means US liquefied natural gas would probably have to go elsewhere.”
• Trump promotes natural gas as it gets caught up in U.S.-China trade war / Washington Post  
  “Only four cargos of natural gas have been delivered to China from the United States during the eight-month period since tariffs were first put on the fuel last September,” compared with “35 cargos during that prior September-April period.”

Taiwan and SE Asia to benefit?

• Taiwan helping tech firms that choose Southeast Asia over China / Bloomberg
  “Taiwan, home base of many of the world’s top producers of electronics, is helping its companies to seek out new Asian manufacturing hubs outside China as skyrocketing U.S. tariffs threaten to splinter the global tech supply chain.”
• Taiwan firms critical to ‘non-red’ regional supply chain: minister / Focus Taiwan
  “Taiwan companies are likely to play a critical role in the development of a ‘non-red supply chain,’ as the government has been offering incentives for overseas-based Taiwanese firms to return home.”

Huawei

• Trump order clears way for barring Huawei from U.S. telecommunications networks / Reuters
  “President Donald Trump on Wednesday signed an executive order declaring a national emergency and barring U.S. companies from using telecommunications equipment made by firms posing a national security risk, paving the way for a ban on doing business with China’s Huawei Technologies Co.”
  “The order directs the Commerce Department, working with other government agencies, to draw up a plan for enforcement within 150 days.”
• Huawei says willing to sign ‘no-spy’ agreements / BBC
  Despite American efforts, Huawei is not giving up on Five Eye countries. Huawei chairman Liáng Huá 梁华 told a business conference in London that the company is “willing to sign no-spy agreements with governments,” including the U.K.

Other American moves against China

U.S. lawmakers want to tighten visas for Chinese students, researchers / Reuters
“A group of President Donald Trump’s fellow Republicans in Congress introduced legislation on Tuesday (May 14) intended to prohibit anyone employed or sponsored by the Chinese military from receiving student or research visas to the United States.”