The Chinese are skillful negotiators. They know the current trade war with President Trump is bad for their economic growth. The Chinese economy is still much stronger than the U.S. economy. But if Trump imposes tariffs on another $250 billion worth of Chines products, the 6.6 percent growth the Chinese experiences in 2018 will take a serious hit. U.S. economic growth is less than three percent now. But economists say the government shutdown will hurt economic growth in 2019. Trump wants China to lower tariffs on American-made products, and he wants the Chinese to reduce tariffs on American-made vehicles.
The people who do business with China know the Chinese don’t like bullies. They negotiate in a civil manner. And they do a lot of planning and research before they make deals. If the Chinese can’t get what they want in face-to-face negotiations, they use a backdoor approach to make the deal go their way. That seems to be the case in the current trade war with Trump.
The Chines just granted Trump’s daughter, Ivanka Trump five more trademarks, and that raises ethical concerns. Ivanka’s company now has a group of Chinese trademarks that include sunglasses, wedding dresses, and childcare centers. She also has trademarks on art valuation services, and charitable fundraising. That gives the Trump Organization a leg up on the consumer-driven economic push underway in China.
According to the Associated Press, the recent trademark approvals may help in tariff negotiations with Trump. Some Washington insiders believe Trump still puts his business interest before what’s best for the country. The recent revelation that Trump didn’t stop negotiating for a Moscow Hotel while he campaigned is the proof some people need to accuse Mr. Trump of personally profiting from his position as president.
The White House released a statement that said the tariff talks with China look promising. Some news reports say giving Ivanka more trademarks is the reason those talks look promising.
The stock market reacted to the tariff talk news, but seasoned investors know nothing is real until the Chinese sign an agreement. But investors think the Chinese will give Trump what he wants.
A spokesperson for Ivanka said the trademarks will protect her name in China from the copycats that copy every American brand. But others say the real reason the Chinese gave her protection was to get a better tariff deal with Trump.