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<div style="text-align: center;" align="center">US-China Trade War</div>
<div style="text-align: center;" align="center"><span style="font-size: 20px; font-style: italic;">A conversation with Wendy Cutler</span></div>
<div style="text-align: center;" align="center">
<span style="font-size: 20px; font-style: italic;">click </span><a href="http://www.insideasiapodcast.com/wendy-cutler-us-china-trade-war/" target="_blank" style="font-size: 20px; font-style: italic; color: #E8F9FF; font-weight: normal; text-decoration: underline;">here</a><span style="font-size: 20px; font-style: italic;"> to listen</span>
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<span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Arial, Verdana, Helvetica, sans-serif;">Trade accords are complex matters. It’s a subject we’ve covered for months here on </span><a href="http://www.insideasiapodcast.com/" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Arial, Verdana, Helvetica, sans-serif; font-style: normal; text-decoration: underline;">Inside Asia</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Arial, Verdana, Helvetica, sans-serif;">, and now it appears, our worse fears are coming true. President Trump has followed through threatening $250 billion in tariffs impacting over 6,000 China-made products. China has retaliated with its own set of tariffs and according to </span><a href="https://www.nytimes.com/2018/08/08/business/trump-trade-china.html" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Arial, Verdana, Helvetica, sans-serif; font-style: normal; text-decoration: underline;">this New York Times article</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Arial, Verdana, Helvetica, sans-serif;">, a tit-for-tat scenario will forever alter US-China trade relations. You can see where this is headed…and make no mistake, consumers—and workers—on both sides of the Pacific will take the brunt of it. </span>
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<span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Arial, Verdana, Helvetica, sans-serif;">There’s more at stake here than </span><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">trade imbalance and plus and minus columns. There’s politics to consider, protectionism, currency adjustments and adherence to literally dozens of ongoing bilateral and multilateral trade agreements. It’s like three-dimensional chess and the players are all your trading partners. </span>
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<div><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">The Trump administration would have us think differently. There are good deals and bad deals, he tells us. And any deal that doesn’t favor the US is bad, and therefore, unfair. It’s a fundamental misunderstanding of what makes trade work in the first place. Compromise is the name of the game, and for experienced negotiators, it’s a matter of listening and discerning the minutia of what’s doable not just for the US, but for each of America’s trading partners. It takes years of work and scores of talks to reach agreement.</span></div>
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<span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">To get at the heart of the matter, I sat down last week with </span><a href="https://asiasociety.org/policy-institute/wendy-cutler" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: normal; text-decoration: underline;">Wendy Cutler</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;"> in her Washington, DC office. Wendy served under the Obama administration as Deputy US trade representative and now holds the title of Vice President and Managing Director of the </span><a href="https://asiasociety.org/policy-institute" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: normal; text-decoration: underline;">Asia Society Policy Institute</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">. For her, watching this trade debacle unfold is particularly painful. Wendy spent years developing and negotiating the Trans Pacific Trade Agreement, or TPP. She remains one most astute and clear headed commentators on Asia trade.</span>
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<div><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">While the Western press likes to focus on implications for the U.S., China has its own unique set of trade issues. Pressuring China to make changes is one thing, but refusing to negotiate is another. There are many reasons why applying tariffs then walking away is a bad idea, but here’s the biggest one: China, and the rest of the world for that matter, have other options. The more belligerent this US President becomes; the more likely the world’s other trading partners will focus efforts on doing deals elsewhere. And so they have. Already the other 11 members of the TPP have moved ahead without the US. The EU is negotiating a new deal with Japan. South Korea is discussing its first free trade deal with Russia. And the list goes on.</span></div>
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<div><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">The great Irony of Trump’s trade tactic is that ultimately it affects US workers. If large US segments like automotive, agriculture, textiles and steel can’t remain competitive, it only goes to reason that companies dependent on global markets will have no choice but to downsize their workforce. </span></div>
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<div><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">Consumers are set to suffer as well. Trump’s tariffs on Chinese goods alone are expected to translate to nearly $20 billion in higher prices for everything from home appliances, to cars, to food. One group, The American Action Foundation, a right of center Washington, DC based thinktank says, and I quote: “Seventy percent of the proposed tariffs are on goods that U.S. businesses use in domestic production, and over 98 percent affect the manufacturing industry.”</span></div>
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<div><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">So scream “America First!” all you want, President Trump. Your protests land on deaf ears. Your guests are dining elsewhere tonight. </span></div>
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<span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">To hear what other US-China trade experts have to say on the subject, check out our earlier episodes with </span><a href="http://www.insideasiapodcast.com/episode-19/" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: normal; text-decoration: underline;">Jim McGregor</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif;">, </span><a href="http://www.insideasiapodcast.com/steve-okun-trump-tariffs-trade-in-asia/" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: normal; text-decoration: underline;">Steve Okun</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif;">, </span><a href="http://www.insideasiapodcast.com/episode-22/" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: normal; text-decoration: underline;">Deb Elms</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif;">, </span><a href="http://www.insideasiapodcast.com/david-hoffman-xi-jinping-china-trade-war/" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: normal; text-decoration: underline;">David Hoffman</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">, and </span><a href="http://www.insideasiapodcast.com/adam-schwarz-trump-trade-and-asia/" target="_blank" style="font-size: 15px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: normal; text-decoration: underline;">Adam Schwarz</a><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">.</span>
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<div><span style="font-size: 15px; color: rgb(0, 0, 0); font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">Thanks for listening!</span></div>
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<div><span style="font-family: Tahoma, Geneva, sans-serif;">Steve Stine</span></div>
<div><span style="font-family: Tahoma, Geneva, sans-serif;">Founder & Host</span></div>
<div><span style="font-family: Tahoma, Geneva, sans-serif; font-weight: bold; font-style: italic;">Inside Asia</span></div>
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<div class="text-container galileo-ap-content-editor"><div><div>Inside Asia | +65 98802184 / +1 518 2583454 | Asia Pacific | <a href="http://www.insideasiapodcast.com" target="_blank" style="color: #E8F9FF; font-weight: normal; font-style: normal; text-decoration: underline;">www.insideasiapodcast.com</a>
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</table><div align="center" style="background-color: #F3F3F3;"><table width="100%" cellpadding="0" cellspacing="0" border="0" style="background-color: #f3f3f3"><tr><td align="center" valign="top" style="padding: 0px 0px 0px 0px;"><div align="center" style="max-width: 600px; margin-left: auto; margin-right: auto;"><table cellpadding="0" cellspacing="0" border="0" style="width: 600px; width: auto !important; margin-left: auto; margin-right: auto;"><tr><td align="left" valign="top" style="color: #5b5b5b; font-size: 11px; line-height: 1.3; font-family: Arial, Helvetica, sans-serif; padding: 20px 20px 20px 20px;"><div style="color: #FF0000; font-size: 11px; line-height: 1.3; font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 13px; font-weight: bold;">THIS IS A TEST EMAIL ONLY.</span><br />This email was sent by the author for the sole purpose of testing a draft message. If you believe you have received the message in error, please contact the author by replying to this message. Constant Contact takes reports of abuse very seriously. If you wish to report abuse, please forward this message to <a href="mailto:abuse@constantcontact.com">abuse@constantcontact.com</a>.<br /></div></td></tr></table></div></td></tr></table></div></body>
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