Wilbur Ross keeps making the press loop for trying to enforce Trump’s Huawei ban. U.S. tech companies do a lot of business with the Chinese tech giant. Huawei is a billion-dollar company with close connections to the Chinese government. Trump banned the company in May. Huawei is Trump’s ace-in-the-hole when he begins to beat China over-the-head with his phase two trade deal.
Signing a phase one deal won’t be as easy as signing that wishy-washy phase one deal if it gets signed. The Chinese won’t buy $50 billion worth of farm products next year. Chinese importers already placed soybean orders in Brazil, and Brazil plans to keep those orders. Brazil’s Trump of the Tropics president plans to destroy large chunks of the Amazon to boost Brazil’s economy by doing more export business with China.
The latest Trump edict will limit the kinds of components U.S. tech companies can buy from Huawei. Huawei knows Trump will continue to apply pressure on CEO Ren Zhengfei, but Ren is up for the battle. Zhengfei closed the company office in Silicon Valley, and he moved the research center to Canada. After the Trump ban, Huawei signed a deal with Russia to build parts of its 5G platform.
Huawei has a 5G deal with at least 40 other countries. Trump wants to stop that kind of dominance. But the U.S. tech companies claim Trump’s method to compete with Huawei is a mobster move rather than negotiating the way the sane do it.
Bob Lighthizer took a few victory laps when the Chinese confirmed they would sign phase one. But China wants its attorneys to look over the agreement. That means China will probably change the agreement before they sign. Mr. Trump knows the Chinese will not sign the deal the way it is. But he can tell his voter base and especially farmers his tariff-screwing method of negotiating, works.
Most farmers still want to wear those red hats like the one Trump wore at the Army-Navy game. The Trumpster spewed a fresh batch of his tariff snake oil on the farmers in order to take attention away from the fact he doesn’t care if China signs phase one. He just wants to sell the sizzle in the deal, not the actual deal because it doesn’t exist.
Bill Taylor, the seasoned diplomat with a stellar government record, let Trump know his idea to hold back military aid to screw Biden was a dick move. Taylor told Congress the Rudy Giuliani fiasco was a mobster scheme, and he wanted no part of it. Bill just announced he’s out of the diplomat game. Mike Pompeo told Taylor Trump’s gunning for him, so he needs to resign before Trump assassinates him Twitter-style.