MNI POLICY: Senate Skeptics Appear Over Reported China Deal

--White House No Comment On Talk On Breakthrough 

By Evan Ryser

     WASHINGTON (MNI) - While President Trump has signalled a deal with China,

members of the U.S. Senate have urged him to stand firm in the negotiations,

warning any phase one deal that fails to include meaningful, enforceable, and

lasting structural reforms would be a severe loss for America.

     "We are concerned that, if trade tensions worsen and necessary diplomatic

pressure is not maintained, the United States will be left with a weak political

agreement devoid of substantive reforms," a letter said Thursday.

     The letter -- signed by Senate Democratic Leader Chuck Schumer, Senate

Finance Committee Ranking Member Ron Wyden, and Senator Sherrod Brown -- urges

the President to sustain pressure on China in order to achieve "meaningful

concessions" in a phase one deal and to go "beyond merely recalibrating the

United States trade balance with China."

     "It is imperative that such an agreement goes beyond merely recalibrating

the United States trade balance with China. Failure to secure commitments from

the Chinese government to enact substantive, enforceable, and permanent

structural reform will jeopardize American jobs and long-term economic

prosperity."

     Senate Democrats commended the Trump administration's "continued focus" on

the China trade talks but warned that strength is the only way to win with

China, and the U.S. cannot afford to back down now.

     "To be clear, your administration must stay strong against the Chinese

government if fundamental concessions are not made."

     --TWITTER CLAIMS

     President Trump indicated movement towards a deal writing on Twitter,

"Getting VERY close to a BIG DEAL with China. They want it, and so do we!"

     Trump met with his economic advisors on Thursday to discuss suspending the

Dec. 15 tariffs in return for Chinese commitments to purchase American

agricultural goods.

     The White House Thursday evening declined to comment on a potential

breakthrough and a delay in imposing the new tariffs.

     -- ADVISORS AND REPUBLICANS

     Dan DiMicco, a former senior trade and economic adviser to Trump during the

presidential campaign, opposed the prospect. 

     "There should be no deal or tariff reduction or delay unless the Phase One

deal covers all 7 points of the USTR's key fundamental issues with China,

including IP theft, forced IP transfer, and strong enforcement rules and

immediate enforcement of strong penalties when they cheat on the agreement as

determined by Mr. Lighthizer, USTR. Just ag and financial services don't cut

it," he said.

     Senator Marco Rubio, a Florida Republican, member of the Senate Foreign

Relations Committee, and former presidential contender in the 2016 elections,

warned against settling too quickly with Beijing.

     Rubio wrote on Twitter, "White House should consider the risk that a

near-term deal with China would give away the tariff leverage needed for a

broader agreement on the issues that matter the most such as subsidies to

domestic firms, forced tech transfers and blocking U.S. firms access to key

sectors."

--MNI Washington Bureau; +1 202 371 2121; email: evan.ryser@marketnews.com

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