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Reeves and Lammy depart as Burnham chooses new cabinet Healey is new chancellor and Shabana continues as Home Secretary. Healey was Defense secretary under Starmer. It is important that he was in 1999 Parliamentary Private Secretary to Gordon Brown as Chancellor of the Exchequer. In 2002 he was appointed Economic Secretary to the Treasury, and in 2005 Financial Secretary to the Treasury. In 2009 he was Minister of State for Housing and Planning. Shadow Secretary of Health in 2010 and 2016, Shadow Secretary for Defense under Starmer after supporting Starmer for leadership of the Labour Party. He was first elected to parliament in 1997 and had majorities of 50-70% in elections serving for 29 years in parliament. He is the right choice for Chancellor, or Finance Minister of the UK to work with Burnham on Labour's goals. Reeves was problematic from the beginning because she stuck to what people said could or could not be done, not able to think outside the box to get Labour to be itself and do what people wanted from Labour. In this way she set herself and the Labour party for failure by losing the very public that Labour had promised to help, with this public becoming indifferent to Labour, because in many ways it was Reeves's Labour not Starmer's. As Starmer, not much of an original thinker and little experience outside of law, followed Reeves economic theories borrowed from The City, Britain's version of Wall Street. Andy Burnham is right to choose someone who can think on his feet, no knowledge of economic theory required because orthodox economic theory has failed America, failed Britain, and created the mess of single supply chain concentrated in China in the first place with its theories of comparitive advantage. What is needed is someone who grasps and hold near his heart the aspirations of the British people, and hears their concerns everyday, not think tanks telling one what to do, and acting on these concerns in creative ways, thinking and improvising solutions along the way, not afraid to experiment. This is how FDR handled the economic difficulties of the 1930's, another period like today's when Wall Street theories had failed badly. This is also how China handled the economic collapse after Mao's death following the Cultural Revolution in 1984-1997. This is how Modi handled the economic difficulties in building a modern nation by experimentation in the western state of Gujarat in 2001-2014 without preconceived ideas and theories, keeping what worked and expanding on it.  Lammy was not the right choice for Deputy Prime Minister, and failed to provide leadership and focus the country's attention on the issues of migrants, asylum hotels, housing, rebuilding relations with the European Union, economic growth, neglect of the north of England and other deprived regions. No such position of Deputy prime minister can be filled in many situations. As Foreign Secretary there needed to be some one who could speak with a stronger voice for Britain with the European Union, the US, China, India, and be seen across the spectrum of views in Britain as an effective voice. ...

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Starmer's visit to China and the result being halving of tariffs- it comes 8 years after Theresa May's visit 2018.  Starmer is following his intution  to set an independent course for Brtian's foreign policy. It makes sense as the US is using common sense in coming back to basics, to getting its own hemisphere policies right. How could there be a situation like that in Venezuela and Mexico as with the drug cartels operating as states within states- what would Teddy Roosevelt say about this? So we now have the Monroe Doctrine, the return of the Panama Canal, the restructuring of the oil industry in Venezuela, and other action. This also means Canada and UK, India, European Union can pursue policies that are common sense. It means for Britain a new openness with China after 8 years inward looking with Austerity, Brexit and Covid. For a smaller economy it makes sense for Britain to have agreements on trade as it signed with India, and now with China. Carney, Starmer and soon Merz will have worked out relations with China on trade and exchanges. For Europe and the US over concentration of making goods in China can be corrected while still engaging with China. For the EU the visits Germany's Merz made to the kite festival an India and Leyen/Costa of the EU following up with trade agreements are all part of common sense to not just reduce over concentration in China, but also to build a new partnership with India to form a 2 billion people market. All of which happened suddenly as European nations realized how to work out new arrangements following the war with Russia over Ukraine and China's support for Russia, taking up the cues from DJT common sense action in its backyard. "I'm a pragmatist, a British pragmatist, applying common sense," the prime minister tells BBC on the plane and says he wants to "make Britain face outwards again."  ...

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UK Reform Party has taken large donations from cryptocurrency companies. Reform leader Nigel Farage has received a 5 million pound gift from a cryptocurrency firm. What does this mean for cryptocurrency regulation in the UK as a world financial center, if Reform wins a general election and appoints the next Governor of the Bank of England when Andrew Bailey retires in 2028. This is discussed in The Guardian. The banking system of the US, UK and large countries was set up over many years and currency is only issued by a central bank with the financial backing of the nation. Cryptocurrency cannot on the basis of technology take that role without posing risks and destabilizing the financial system. The gradual splitting of society by the information economy, neglect of infrastructure, pharmaceutical pricing, banking speculation as in 2009 crisis, have been eroding some of the basic structures of democracy for the last two decades from within.  The wars in the Middle East policies, and the open borders migration policies, were effects from outside. What this has led to is counter to what one would expect. To fight open borders and the marginalization of some parts of the working class DJT Republicans have used whatever resources were available at the time in the 2024 presidential election. The cryptocurrency firms used this in opportunistic fashion to affect regulation of this currency by supporting the reelection bid of DJT in 2024 by making large donations. This has led to less regulation of cryptocurrency firms. Is this in the best interests of the Nation? Will this destabilize the banking system in ways that have happened before in the deregulation of banks before the 2009 financial crisis? In Britain a new Bank of England governor will be appointed after Andrew Bailey's term expires in 2028. Reform party in UK if elected as government would appoint the next Governor of the Bank of England. Reform's growing popularity is a result of Conservatives and Labour failing to take action on open borders, asylum hotels, and migration policy, following an ECHR code of rights that is inappropriate to such migration. What this means is that unexpected things happen as a result. Cyrptocurrency risks of destabilizing the banking system increase as a result of failure of parties on migration. This could be more destabilizing for Britain because of its role as a financial centre than the industrialized  economies such as Germany, China, and industrializing economies such as India. It poses risks in the US yet Federal Reserve Governor Walsh can exercise his own judgement about cryptocurrency and Congress can exercise oversight, the large banks can act to show the risks of destabilizing that cryptocurrency can pose. For Britain it is particularly dangerous as the US is also an industrialized power compared to Britain's focus on finance alone. Andrew Bailey can ignore lobbying by Reform Party in 2026 (Farage met with the Governor of the Bank of England), yet what happens if Reform appoints the next Governor in 2028? These are questions Britain needs to ponder. It is also why Andy Burnham is Britain's last chance to get things right on migration to the point that the British people feel good and proud of their heritage and history, British neighborhoods across the country feel safe and secure, and Britain shifts to reindustrialize its economy with partners in China and India, the European Union, and the US. A former Deputy Governor of the Bank of England, Sir Charlie Bean told the BBC about donations of Christopher Harbonne, who has a 13% ownership interest in cryptocurrency firm,Tether. "Stablecoins are only stable if they have the appropriate regulatory environment… But there is right now an unsurprising regulatory race to the bottom amid the potential for greater profits." He added: "When funds are coming from major shareholders of such large financial institutions, there is a clear potential conflict of interest here, for example, in the appointment of a new Bank of England governor. Transparency is one solution." ...

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How the visit is presented in China, what the Chinese people are seeing of the US president live and on their screens, and of the two leaders Xi and DJT agreeing to a policy of mutual respect and harmony in relations after a decade of mistrust during both the first DJT and the Biden administration. The choice was clear- mistrust and risks for world peace or the mutual respect that leads to harmony in relations. And both leaders are making the educated, decent and good choice.

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The U.S. and China sign Phase 1 of the trade agreement in a sign of reduction of trade tensions between the two countries. Difficult issues of state subsidies under China's state enterprise model of development, and technological competition were put off for the future. China made the deal possible by agreeing to double its purchases of agricultural products, and offering to purchase about $200 billion in American goods and services over the next two years. This gives relief to farmers, a key part of Mr.Trump's support base. This also helps achieve a key Trump and U.S. goal of cutting the U.S. trade deficit with China quickly, just as happened decades ago with Japan.  See the related article and link on how for the first time in decades China's trade surplus with the U.S. is now set on a path for permanent decline. It dropped significantly in 2019 by 12.5% even though China's imports from the U.S. dropped by 21%, based on Chinese customs data released for 2019. With China increasing these imports significantly and the U.S. holding on to tariffs of 25% on $250 billon of China's exports to the U.S. which are outside the Phase 1 agreement, the downward course is set for the next few years for correction of a dangerous trade imbalance. That imbalance was allowed to develop over successive Republican and Democratic administrations. China already has the European Union as its first leading trading partner and south east Asia as its second. China plans to not be so closely intertwined with the U.S. in trade, and yet preserve its state sponsored development model and drive to compete in technology. China's increased purchases from the U.S. of $200 billon are broken down in terms of farm products- $32 billion, manufactured goods- $80 billion, energy products- $50 billion, services $35 billion. In effect the U.S. gets its goal of cutting the unsustainable China trade surplus quickly and with certainty in 3-5 years. China uses the period to transition for less trade linkage with the U.S. yet preserving its state sponsored model of development and drive for technological advancement.   ...

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If the trade war escalates to the point at which president Trump imposes tariffs on all Chinese goods imported into the U.S. on Jan. 1, 2019, China could retaliate with its own tariffs and this might affect Boeing aircraft as well. The results would be to tip the economies of both countries into a recession, and affect Mr. Trump's best chances for reelection in 2020. This can happen as Mr. Trump has a great deal of confidence in his negotiating style. The negotiations so far have shown China misread the U.S. and Mr. Trump leading to a strong U.S. response.  There is also the importance of not losing face, Mr. Xi's domestic audience, Chinese industry that sees a fundamental change from state subsidies model as eroding its position and offering resistance, patriotic sentiment making it harder to meet U.S. demands. Fundamentally for Mr. Trump it is about U.S. trade deficit and changing the huge trade surplus of almost $1 trillion that China enjoys each year with the U.S. which has been and is no longer sustainable. Mr. Trump also has the backing of Republicans on this issue and Democrats cannot afford to be soft on this issue as it involves American workers and jobs are at stake. Both sides could be in for a protracted negotiation as Mr. Trump feels it is right for Americans to expect fair trade and technology transfer that respects American concerns. In addition the U.S. could sense that it exports less to China, is less dependent on exports than China, and as the party that is hurt by unfair practices insist on its position. After Japan agreed to U.S. demands that it reverse a huge trade surplus in the seventies in which Mr. Lighthizer was the negotiator its growth declined sharply and is economy stagnated. China may sense inside that this could happen to its economy. Today Lighthizer the U.S. negotiator and Trade Representative could also push hard because of he was able to convince Japan to change its course. ...

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For the first time in decades the U.S. trade deficit with China is falling significantly. China's exports to the U.S. dropped 12.5% to $296 billion in 2019 from $323 billion in 2018, according to Chinese customs data. Actually China's trade surplus with the U.S would have fallen even more had not the U.S. exports to China declined by 21%. With the Phase 1 trade deal negotiated recently U.S. exports to China will increase significantly, while 25% tariff on $250 billion in Chinese goods still in place limits China's exports. This means in 2021 and 2022 and years ahead China's surplus should shrink much faster achieving one of the principal goals of Mr. Trump and his trade negotiator Mr. Lighthizer. Mr. Lighthizer was chosen by Mr. Trump for having accomplished a similar goal decades back in the eighties with Japan's surplus. Even though China has not stated this in writing, American officials have said China will increase purchases of American goods and services by at least $200 billion over the next 2 years from 2017 levels. China and the U.S. have essentially agreed that the two economies so tightly intertwined works to the detriment of the U.S. with the Chinese surplus creating tensions. China will now have the European Union as the largest trading partner followed by south east Asian countries, and other regions. China decided that its priority is technological development and was unwilling to meet U.S. demands to reduce its efforts for technological competition and access to western technologies. Instead opting for shifting it economy away from dependence on exports to the U.S. in a gradual way. The other demand of the U.S. for stopping state subsidies is also a concession China is not willing to make as it sees it as an economic feature of its business model that is working and a competitive advantage.  This leaves the U.S. with a limited win so that trade and resulting jobs can be brought into favoring the U.S. a key Trump goal, and not a win in the technological competition with China which will continue. ...

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China's strategy appears to be to allow the transfer of TikTok ownership to an American consortium and focus it's efforts on renegotiating the 30% tariff on China and China's response of 10% on the US. China is making an effort to protect industries in China that have surplus production. China wants DJT to meet Xi for a Summit in Beijing instead of South Korea as the US has suggested. And Xi  offers to make a visit to Washington DC to improve relations. Scott Bessent and the USTR Greer in negotiations  with the Chinese trade negotiator Vice Premier of Economic Policy, He Lifeng, in Madrid, have come up with an agreement. The US COngress has passed legislation requiring the sale of TikTok to US owners because of sensitive information issues. China now reversed its policy in April when it opposed this as it now sees little advantage in that policy and can concentrate on better trade terms from DJT. A stumbling block is the flow of fentanyl for which DJT imposed 20% of the 30% tariff on China, the other 10% being standard for all countries. ...

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For the first time the U.S. focuses on the huge trade deficit with China in a serious way. The trade negotiating team led by Robert Lighthizer has set forth its negotiating terms.  1. China must reduce its trade deficit with the U.S. by $100 billion in the first 12 months. In the next 12 months it must reduce its deficit by another $100 billion. In 2 years the trade deficit the U.S. has with China must come down by $200 billion. The issue is no longer just the tariffs on steel, it is about the core issue of balance in  trade. 2. The U.S. says subsidies to state industries in the "Made in China 2025" program must stop. Here the focus is on gaining an unfair technological advantage with a combination of U.S. technology imports and subsidies to state advanced manufacturing industries to erode over time the U.S. technological lead.  3.  China is expected to cut its tariffs by about two thirds on imported products so that the tariffs match that of the U.S. This is the first serious negotiation the U.S. has conducted with China on the core issue of the trade surplus which is growing with a stronger dollar not declining. The surplus approaches $1 billion each day for about $365 billion a year, unsustainable from any perspective. The vital issue of the erosion of the U.S. technological advantage under the Made in China 2025 has turned this issue into one in which the U.S. is unlikely to back down. Especially now that Mr. Lighthizer is leading the  negotiations and has the confidence of the president of the U.S. Lighthizer is a veteran of negotiations from an earlier period -under the Reagan administration in a similar situation with another national competitor- then it was the Japanese. A relentless negotiator as the U.S. seeks to reverse a trade imbalance of stupendous proportions neglected by previous administrations.           ...

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Following president Trump's decision to increase tariffs on $200 billion of Chinese goods on May 9, 2019, the WSJ looks at the mistakes made by both sides in misjudging each other's negotiating position. Mr. Trump says he is willing to increase the pressure on China by imposing tariffs on all Chinese imports into the U.S. after what he sees as China reneging on its commitments on trade by deleting key sections on enforcement provisions and Chinese legislation for enforcement to take place in the 150 page agreement prepared for both presidents to sign.  Early on in the negotiations between Liu He and Mr. Lighthizer, China misread the thinking on the U.S. side. Chinese thinking was that president Trump's urging for the Federal Reserve to lower rates was a perception sign of the weakening U.S. economy. It also may have misread the extent to which Mr. Trump trusts Mr. Robert Lighthizer, who Mr. Trump respects for winning a good deal with the Japanese in similar situation of Japanese rejection of U.S. demands. Mr. Trump also thinks the U.S. has a strong economy, is the largest world producer of oil, strong economic growth in the last quarter of 2018, is also negotiating better deals with other countries including the ones with Mexico, Canada and South Korea. It is also much less dependent on exports to China, giving it a stronger position with more experienced negotiators. China has whole sectors of its economy dependent on exports to the U.S., and crucial numbers of jobs at stake.  China also misread the signals from its stronger than expected economic growth from stimulus efforts in the last quarter, leading to it staking out a tougher position than the U.S. would accept. The U.S. position was set after decades of waiting for China to change and was unlikely to be affected by any temporary considerations.  As a result the U.S. not anticipating the Chinese response of deleting key sections agreed to in advance from the 150 page written agreement gave a strong response. Mr. Mnuchin who accompanied Lighthizer in talks says Mr. Lighthizer "read them the riot act" to the Chinese side. For the Chinese side the effort now shifted to continuing good faith talks without appearing to back down. ...

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US China agreement on TikTok sale to American ownership as required by Congress, Scott Bessent announces that an agreement has been reached with China in negotiations for the transfer of ownership. China is concentrating its energies in negotiating tariffs that were kept at 30% by the US and 10% by China which hurt Chinese industry in industries where it has overcapacity.

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WIth China reluctant to make concessions on agricultural imports at a recent Shanghai meeting of Mr. Lighthizer with Chinese trade representatives, the trade dispute with China has escalated. Mr. Lighthizer had little to show Mr. Trump at a meeting in the WHite House. After a 2 hour meeting Mr. Trump told his advisers that his patience was wearing thin. His response on what the U.S. should do- "tariffs." A tweet was prepared saying U.S. would place import duties of 10% on imports of additional $300 billion in Chinese goods. China responded by lowering its currency value to 7 to the dollar to offset the import duties. China also said it was suspending all agricultural imports of U.S. farm products. The U.S. designating China as a currency manipulator.  The situation today is that there is a level of mistrust between president Xi and his advisers and Mr. Trump and his team. The situation has taken a new turn with China saying the U.S. is supporting protests in Hong Kong. President Trump has stated China is waiting it out to deal with a new administration in Washington. Both sides do not see any solutions till after the U.S. elections in 2020. For China there is also the upcoming 70th anniversary of the People's Republic. ...

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The rise of Japan was a major challenge for president Reagan in the 1980's in the way president Trump is confronting the rise of China. The Reagan administration obtained the concessions it needed from Japan. The negotiator for the U.S. side during the Reagan years - Robert Lighthizer. Lighthizer is using his experience in winning concessions from Japan in his role as top trade negotiator with China.  As the WSJ points out Japan ceased to be a threat to the U.S. faster than anyone thought possible. 

But there is one problem even if this happens the warning is that the imbalances with Japan simply transferred over time to China. The warning is for America's tendency to spend money it does not have, and for how long.

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  US's womens socceer's Carli Lloyd, who led the US women's soccer team many times in her career, was honest and blunt on FOX television coverage of the 4-1 loss to Belgium in World Cup Soccer 2026. The host country failed to make it into the quarter finals after so much advertising on television, way too much not even good for the players. There is so much money on television ads and promotions that it must hurt the players and the game. Messi, Neymar, Vinicius Jr., Pulisic, and some Mexican players, were all put up as players who could do anything on television. In the end none of them did well, Messi almost in tears after Argentina was behind 2-0 for most of the 90 minutes against Egypt, only miraculously surviving. Brazil is out going down to Paraguay. Christiano Ronaldo, the first billionaire in soccer, was a little kid from a struggling family in Madeira, Portugal, and he too went out after failing to score on several passes, with Portugal's loss to Spain. All this may be a good thing and a learning lesson for the sport. For all those who love the sport and think things have gone overboard with television advertising,  with excessive brand sponsorship on television, making entertainment stars who knows to what purpose, but losing the best of the game of soccer in the process. And these are Carli Lloyd's comments (Carli who after 318 appearances and bringing so much joy to young girls for the sport worldwide has a net worth of $2 million compared to the now billionaires and others on the way to billions, or hundreds of millions, television stars of the sport who could not get their game right in World Cup Soccer 2026.) There are lessons for the sport which is the most popular sport not only in all the developed countries but also the poorest large countries on the planet like China, India, Brazil, Egypt. “I felt like they lost the game before they even stepped out on the pitch." “And I’m not sure why, and I don’t know the reasons. But just from the beginning: chasing. Tentative. Scared. Just not confident on the ball.”  "You wanted some of those big-time players to step up in big-time moments." “And I gotta be honest: I was a bit disappointed in Christian Pulisic. Whether he wants to be the star of this team or not, we didn’t see enough from him in this particular game — and, really, the whole World Cup. Little glimpses here and there.” ...

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A major speech at the Nixon Center by Secretary of State Pompeo calling for an end to blind engagement in U.S. China relations and for a free 21st century.

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Germany is trying not to choose sides in the trade and security disputes between China and the U.S. Yet it owes a lot to the U.S. from the days of the Marshall Plan and U.S. taking on the role of defending Germany after the Berlin Wall. China was then a partner with the Soviet Union in the Cold War.  Today China is Germany's top market for its car industry. Yet the U.S. export market is much larger than China at $119 billion with China's at $96 billion. In Germany 28% of jobs are linked to exports, and in manufacturing this goes up to 56%, according to Germany Ministry of Economic Affairs. Germany supplied much of the factory  equipment from its engineering companies and the infrastructure that powered up the China transformation. A transformation now underway in India.  There are signs of a shift as engineering companies in Germany grew faster in the U.S. than China, increasing by 6-10% a year. India remains a key growth market for Germany over the next 10-15 years as growth in China slows and India accelerates with its younger demographics and investment in infrastructure. Much of the infrastructure in China is built and it is approaching the saturation Japan reached in the 1990's with additional investments adding little in the way of productivity. Longer term Germany has more potential for growth in countries in South and South East Asia  that will need to make huge investments in infrastructure and technology for manufacturing to meet the aspirations of the people there. Other issues related to freedom going back to the Berlin Wall and the rebuilding of Germany after World War II will emerge. German companies are running out of patience says this report in the WSJ with the bureaucratic obstacles, forced technology transfers, subsidies by state model to extinguish competition, and protectionist approach to home markets, even as state funded companies in China put other companies in Europe, Asia and the U.S. at a disadvantage. Germany will need to transition to a shift in its global relations, a process that is only now taking place. Just as with austerity policies in which it has now made the shift from going with the northern European countries (Sweden, Denmark, Netherlands, Finland) to the Southern European (France, Italy, Spain) in favor of common solidarity even at the short term cost of common debt, Germany now is facing the shift for solidarity with the U.S. for its support of Germany from the period of the Berlin Wall in the 1950's, for the U.S. and European solidarity in the face of the post-coronavirus world. The U.S. showing its generosity and openness to Germany and war torn Europe even as it took on the added responsibilities for creating a new alliance with Europe.   ...

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This report in The South China Morning Post in Hong Kong, gives insights into the Chinese position in trade war with the U.S.  China has its own internal groups which support China being able to take a leadership role in world affairs. Xi Jinping made giving China a prominent role in the world a feature of his presidency. China  has this internal audience and its own sense that China's resurgence was won with hard work and cooperation, plus dedication of the Chinese people. In the past Japan and South Korea also used state subsidized industries, and subsidies to gain leadership in key business sectors involving high technology. China would see this state subsidies model as its own model of development. From this standpoint the U.S. demands on subsidies as unfair competition could be seen as changing a key part of its economic model.  Asking China to put everything in writing and show tangible proof of enforcement as the U.S. insisted in talks, was too much for the Chinese side. China said trust us to do this, and lift the tariffs based on our verbal assurances. The U.S. having seen decades of no progress on this point, wanted tangible proof before tariffs were lifted. Added to the demands on subsidies were the demands for no more of what the U.S. calls stealing of U.S. technology through forced transfer of technology by U.S. firms as a condition to operate in Chinese markets. With the U.S. lagging in 5G technology and Huawei ahead the issue resonates on the U.S. side. Add to this Mr. Trump's key voter base includes the former Democratic party supporting workers who have shifted to him because of trade agreements and policies of Clinton and Obama that hurt American workers through seemingly endless closure of manufacturing plants from Chinese competition.   ...

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The U.S. orders the closure of the Chinese consulate in Houston, Texas. The State Department in a statement said China was conducting "massive illegal spying and influence operations throughout the U.S. against U.S. government officials and American citizens," saying such activities have increased. Footage on local television stations purportedly showed people burning documents on consulate premises, and firefighters were called, says this report in the WSJ. In Copenhagen, Secretary of State Pompeo citing two hacking indictments and U.S. jobs stolen by China's policies, said  "President Trump has said, 'Enough, we're not going to allow this to continue to happen." The two hacking indictments relate to two hackers in China working for China's civilian intelligence agency, targeting American firms involved in coronavirus research and stealing hundreds of millions of dollars of sensitive information from companies around the world, says this report in the WSJ. ...

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China's role for World War II defeat of Imperialist Japan given prominence in 2025. China made huge sacrifices in fighting the Japanese just as Russia made huge sacrifices fighting the Nazis in Germany, yet US help was crucial in helping China stay in the war to the end in 1945. Roosevelt sent one of America's best soldiers personally selected by Gen. George Marshall, Joe Stilwell to China. The best documented writing about this period of the war and the role of Stilwell is in Barbara Tuchman's book- Stilwell and the American Experience in China. Stilwell starts his knowledge of China in the period of the First World War when he decides to take the position as military attache to the American consulate in China. Tuchman is the only writer who was welcomed by China's revolutionary leader Mao to write about China during the renewal of US relations. She gives the best account there is of how Stilwell in his different trips to China learned the language and lived with the ordinary people, embracing the conditions of China's backwardness and war torn countryside as Japan invaded. No American or European in history could be said to have done what Stilwell had done in restoring the morale and giving self respect to China at an extremely difficult time of poverty, backwardness and war. To read it is to realize how America and Americans fought all the colonial ideas of the British and the French and Dutch and embraced the dignity and culture of the Asian people. Gen. Joe Stilwell was the best of America- of whom it could be said in all races, especially in China, he defended justice and protected the weak. ...

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U.S. president Trump names Robert Lighthizer, the U.S. Trade Representative, as head of trade negotiations with China, following a weekend summit of G-20 in Buenos Aires where he setup a truce with Chinese president Xi Jinping. The truce means the next round of tariffs on $200 billion of Chinese goods will be suspended. China had hoped Treasury Secretary Mnuchin would head the negotiations. Mnuchin had negotiated with China earlier. Lighthizer has taken a long view on the negotiations wanting to strengthen the U.S. position particularly in relation to protecting U.S. technological edge and preventing transfer of U.S. technology to China. Trade expert Pillsbury of the Hudson Institute says this steers the negotiations from informal under Mnuchin to the legal negotiations under a trade negotiating team of Lighthizer that have set forth the charges against Beijing under U.S. trade law. The outcome sought is a legally binding document that commits China to getting certain results to reduce its trade surplus with U.S. of about $1 billion each day. Mr. Trump called for "level the field" in a message after the G-20 summit. Specific details of about 142 issues in trade were brought up in the talks of Trump with Chinese president Xi in Buenos Aires. ...

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Apple gets 19% of its sales in China with a manufacturing base that includes 1 million people employed in one Chinese city. In an effort to promote Make in China China is giving Huawei more room to compete with Apple. Huawei is bringing out a new 5G phone as an alternative and has banned use of Aplle iphones in government agencies. This means about 56 million people will have to turn to locally made products. China presents this move as an effort to protect data and cybersecurity. Yet Apple has a share price increase of 46% this year even in an environment in which US and China are restricting the export of key technologies (by US) or critical materials for electric cars (by China). Apple's responses to this have been slow preferring to keep its supply chain the way it is in a strategy based on the short run, with some minor shift to India and Vietnam.

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The U.S. and China presented conflicting views on trade and security in Asia-Pacific region at the APEC summit in 2018. Vice President Pence said "we don't drown our partners in a sea of debt," in a criticism of the China Belt and Road Initiative. The U.S. has 1500 new projects and $61 billion in new investments in the region. Mr. Xi Jinping stated " confrontation in a Cold War, hot war, trade war will produce no winner." 

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US and Chinese trade negotators vice premier Lifeng for China and Scott Bessent, Treasury Secretary, Jamieson Greer USTR, meet in Switzerland, for talks on tariffs of 145% and 125% on each others goods. An agreement for a 90 day pause is reached. During that pause period tariffs will be 30% by the US, and 10% by China on imported goods. The 30% tariff of the US includes the original 10% tairff on all nations and the 20% tariff for China not doing enough to stop flow of fentanyl  into the US. China says it now recognizes the seriousness of the damage to communities in the US from fentanyl.