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“This Is A Red Line”: Beijing Warns Trump Trade Deal Is Off If US Imposes Tariffs

In a scathing editorial warning Trump to back off on his latest tariff threat, on Sunday China said that any trade deals between the US and China, and any progress and commitments made so far in bilateral negotiations would be withdrawn if President Donald Trump follows through with this threat.

“If the U.S. rolls out trade measures including tariffs, all the agreements reached in the negotiations won’t take effect,” the state-run Xinhua News Agency reported this morning, citing a statement from the Chinese team that met with a U.S. delegation led by Commerce Secretary Wilbur Ross, which arrived in China overnight.

US trade delegation led by Commerce Secretary Wilbur Ross is in China to discuss bilateral trade relations, June 2-3

Separately, China has continued to express growing frustration with the tactics deployed by the White House, and an editorial in the nationalist, state-run tabloid Global Times said that “the U.S. can’t have its cake and eat it too,” adding that the U.S. “needs to choose between tariffs and exporting more to China.”

China’s anger is the result of Trump’s revival of the simmering trade war between the two superpowers after Trump last week unveiled a plan to slap tariffs on $50 billion of Chinese imports, casting into doubt ongoing trade discussion about how to reduce China’s $375 billion goods-trade surplus with the U.S.

As Bloomberg clarifies, the Xinhua report came out on Sunday after Ross met with Chinese Vice Premier Liu He for talks that Ross called “friendly and frank, and covered some useful topics about specific export items.” At the same time as negotiators focus on technical steps to reduce the U.S. deficit, Trump’s aggressive reversals have rattled Beijing as it raises concerns about the possibility that any agreement made could be simply torn up by the president.

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Trade Deals and the Environmental Crisis

Trade Deals and the Environmental Crisis

Those representing the U.S. in these negotiations are mainly business lobbyists who have been given the frame of state power to promote policies that benefit the businesses they represent. The thrust of the agreements is to enhance corporate power through legal mechanisms including patents, intellectual property rights and ISDS (Investor-State Dispute Settlement) provisions that create supranational judiciaries run by corporate lawyers for the benefit of corporations. Shifting the power to regulate greenhouse gas emissions to the corporations producing them precludes effective regulation in the public interest. The position that environmental harms must be proven before regulations are implemented leaves a dead planet as the admissible evidence.

U.S. President Barack Obama is both the most articulate American politician urging action on climate change and the central Liberal proponent of the trade agreements. The apparent paradox isn’t difficult to understand— the trade agreements will be legally binding on signatory states while Mr. Obama’s statement of the problem won’t be. As evidence of global warming mounts the Republican tactic of denial is looking more and more delusional. By articulating the problem Mr. Obama poses Democrats as the solution while handing the power to curtail greenhouse gas emissions to business lobbyists and corporate lawyers.

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