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China made 3 demands to end the trade war, only one of them is legit

trump xi jinpingThomas Peter/Reuters

  • One sticking point of China's in the trade war is the amount of US goods the Trump administration wants China to buy.
  • This is a demand that actually makes sense.
  • In most cases, the US couldn't even satisfy Chinese demand for goods without messing up supply chains or changing production.
  • If China were to buy enough goods to close its trade deficit with the US, it would fundamentally change its economy in ways it is not ready for.

The word from China's state media is that the country is making three demands of the US in order to end the trade war.

  1. China demands the US remove all tariffs on Chinese goods.
  2. China demands that the amount of goods it must purchase from the US be realistic.
  3. China demands that its "sovereignty and dignity" be preserved.

Multiple outlets carried this message, including The People's Daily, Xinhua, and The Global Times. Both the first point, the removal of all tariffs, and the third point, the preservation of Chinese sovereignty, are inextricably tied as part of the country's negotiations with the Trump administration. See the rest of the story at Business Insider

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SEE ALSO: China's nasty threat to retaliate against the US in the trade war would backfire catastrophically

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