Report on Supply Chain Compliance 2, no. 22 (November 21, 2019)
During negotiations between the U.S. and China on October 11, U.S. President Donald Trump announced China would be spending “forty to fifty billion” on farm produce—a marked increase from purchases in the past. The spending would, according to a press conference, be part of Phase One of a multiphase negotiation to end the trade conflict between the two countries.
The Wall Street Journal reports, however, that trade talks have snagged on several issues, including the amount of farm produce China will agree to buy. Chinese trade negotiators never openly nor officially endorsed President Trump’s “forty to fifty billion” number and seem to be waiting for the U.S. to lift tariffs before committing.
Meanwhile, the U.S. is keeping the pressure on Chinese companies by:
Investigating Chinese video app TikTok for cybersecurity issues;
Trying to prevent the Chinese acquisition of a Ukrainian aerospace company; and
Competing with Chinese companies in the 5G and electric automobile industries.