Patterico's Pontifications

7/15/2019

China threatens Trade Freeze over Taiwan Sales

Filed under: International — DRJ @ 7:10 am



[Headline from DRJ]

China says will freeze out U.S. companies that sell arms to Taiwan:

China’s government and Chinese companies will cut business ties with U.S. firms selling arms to Taiwan, China’s Foreign Ministry said on Monday, declining to give details of the sanctions in a move likely to worsen already poor ties with Washington.

China claims self-ruled and democratic Taiwan as its own and has never renounced the use of force to bring it under Beijing’s control. China regularly calls Taiwan the most sensitive issue in its relations with the United States.

Last week, the Pentagon said the U.S. State Department had approved the sale of the weapons requested by Taiwan, including 108 General Dynamics Corp (GD.N) M1A2T Abrams tanks and 250 Stinger missiles, which are manufactured by Raytheon (RTN.N).

Should Trump be the only leader allowed to use trade as a weapon?

— DRJ

18 Responses to “China threatens Trade Freeze over Taiwan Sales”

  1. Should Trump be the only leader allowed to use trade as a weapon?

    “Allowed” is such an interesting choice here. It’s pretty obvious that Donald Trump believes that might makes right. Aside from that, he is not the only one who does and I’m sure he’s not the only one who will.

    Gryph (08c844)

  2. I was thinking of people who like when America does it but object to other countries doing it.

    DRJ (15874d)

  3. If General Dynamics and Raytheon are doing business with China, I am picking up the phone to call my Senators right now.

    nk (dbc370)

  4. 2. I call those people “Trump Humpers.” But regardless, if we were obeying the constitution, Congress would be setting trade policy rather than the president. Oh well.

    Gryph (08c844)

  5. 3. It’s a safe bet that every corporate entity in America is doing some sort of business with China. Especially if they’re multinational.

    Gryph (08c844)

  6. Ok, I see:

    On Sunday, the ruling Communist Party’s official People’s Daily posted an article on its WeChat account identifying U.S. companies that could be vulnerable to sanctions.

    They included Honeywell International Inc (HON.N), which makes the engines for the Abrams tanks, and private jets maker Gulfstream Aerospace, which is owned by General Dynamics. China is an important market for both Honeywell and Gulfstream.

    Why do I suspect that both the American people and the Chinese people are ruled by the same reptilian overlords who are keeping us ignorant and subservient with complicated reality shows in the guise of governments?

    nk (dbc370)

  7. 6. That sounds…plausible.

    Gryph (08c844)

  8. Gryph,

    I trust you mean the term as a general reference and not a personal attack on anyone here, right? Also, within reason, I am willing to let Presidents make executive decisions that Congress may have made in the past. “Within reason” is the sticking point, though.

    DRJ (15874d)

  9. At the least, the leaders are picking winners and losers, with advance notice of who those winners and losers will be … notice that we mere mortals don’t have.

    DRJ (15874d)

  10. 8. If someone feels insulted by my (admittedly crass) description of Trump supporters, that speaks for itself. As for myself in this instance, I am not talking about anyone in particular here.

    And presidents have been making decisions that the constitution explicitly gives congress the authority for, for much longer than I’ve been alive. This ought to concern every right-thinking individual, as the constitution is essentially meaningless when we don’t follow it as its framers intended (and let’s face it; we’re not).

    Gryph (08c844)

  11. But regardless, if we were obeying the constitution, Congress would be setting trade policy rather than the president.

    Well, actually, to be fair to all Presidents and not just Trump, under the Constitution foreign relations are almost the exclusive province of the President, with the advise and consent of the Senate required only if the “treaties” are to have full dignity as laws under the Supremacy Clause. Interstate commerce is what belongs to Congress.

    nk (dbc370)

  12. 11. I stand corrected. However, it speaks to the atrocious state of civics education that I bet you could hardly find a handful of students in any high school who know what “advice and consent” means, let alone its role in foreign trade negotiations.

    Gryph (08c844)

  13. China is also threatening Canada – says it shold not place its hope on allies.

    https://www.nytimes.com/2019/07/14/world/asia/china-canadian-arrested.html

    Since Ms. Meng’s arrest, the Chinese government has ratcheted up the pressure on Canada, halting imports of Canadian canola oil and beef. Officials have been unusually brittle in expressing disdain for the country.

    “We hope that the Canadian side will not be too naïve,” Geng Shuang, a spokesman at the Chinese Ministry of Foreign Affairs, said this month.

    “Canada shouldn’t naïvely think that gathering so-called allies to put pressure on China will work,” he said.

    Mr. Geng was referring to Canadian officials asking Washington for help in the release of the former diplomat, Michael Kovrig, and the businessman, Michael Spavor. Both men have been held in secret detention sites, without visits from lawyers or family members.

    Sammy Finkelman (dec35d)

  14. China is acting a little bit like Iran, trying to tell companies to break laws.

    Sammy Finkelman (dec35d)

  15. As for myself in this instance, I am not talking about anyone in particular here.

    That was my concern. Thank you.

    DRJ (15874d)

  16. “Canada shouldn’t naïvely think that gathering so-called allies to put pressure on China will work,” he said.

    Yes, Canada would be naive to think that they could count on Trump to have their backs. Heck, all Xi would need to do is promise Trump a date with Kim Jong Un and Trump would let China annex the Yukon.

    nk (dbc370)

  17. The Chinese have been using trade as a weapon for 20 years, mind you the lesson they learned from the opium wars, but the WTO let them get away with it

    Narciso (7adc33)

  18. For what it’s worth:

    China’s economy grew at its slowest pace in almost three decades in the second quarter (2019) as the trade war with the US took its toll on exports.

    Please bear in mind were talking about financial reporting done by a communist country – who really knows what the real numbers are.

    bendover (aa5a9b)


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