Plan to Pressure 70 Countries in Negotiations to ‘Restrict Trade with China’ Led by Secretary Besant
(Seoul = Yonhap News) Reporter Lee Sin-young – The Wall Street Journal (WSJ) reported on the 15th (local time) that the Donald Trump administration, which had launched tariff bombshells globally, is adopting a strategy to isolate China on the international economic stage.
The strategy involves pressuring countries to sever ties with China in forthcoming reciprocal tariff negotiations with roughly 70 countries by offering reduced tariff rates, which is aimed at delivering a blow to the Chinese economy. It is noteworthy whether similar demands will arise in upcoming negotiations with South Korea.
The WSJ reported that the U.S. government has already mentioned such plans in early talks with certain countries.
The White House has requested countries to block the transportation of goods involving China and prevent Chinese companies from setting up operations to circumvent U.S. tariffs or accepting cheap Chinese industrial products in exchange for lowering tariff barriers.
President Trump hinted at this strategy in an interview with the Spanish program ‘Fox News,’ stating that the U.S. is considering an approach where countries may have to choose between the U.S. and China.
According to the WSJ, the individual leading this strategy is Treasury Secretary Scott Besant.
Secretary Besant proposed at a meeting in Mar-a-Lago on the 6th that pressing U.S. trade partners could prevent China from circumventing American tariff barriers.
It is also reported that Secretary Besant has not ruled out the option of delisting Chinese companies from U.S. stock exchanges to isolate the Chinese economy.
In a Fox Business interview on the 9th, he mentioned that delisting Chinese companies on U.S. stock markets is “on the table.”
The U.S.’s strategy to isolate China is evaluated as an attempt to bring Chinese President Xi Jinping to the negotiating table with President Trump and weaken China’s negotiating power.
The WSJ indicated that the demands upon countries could vary depending on their economic ties with China.
Furthermore, some countries engaged in early negotiations with the U.S. have mentioned not having heard related demands about China, making it uncertain whether such isolation conditions will be proposed to all countries.
However, it is largely anticipated that the Trump administration will soon raise China-related demands with various countries.
Secretary Besant plans to meet with Japanese Economy Minister Ryosei Akazawa to discuss tariffs as early as the 16th.
He has also announced plans to negotiate with South Korea next week, with the UK, Australia, and India being considered priority negotiation countries.
China, meanwhile, is showing no immediate sign of yielding to this U.S. pressure.
Peter Harrell, a former White House senior director for international economics, stated during a forum at Georgetown Law School that China views President Trump’s ‘reciprocal tariff gamble’ as an opportunity.
However, Harrell noted that while the U.S. remains a large net importer, China is reducing imports and focusing on domestic demand, which could limit China’s responsive strategies.
White House spokeswoman Caroline Leavitt stated in a briefing that President Trump remarked that “the ball is in China’s court” regarding trade negotiations.
In a statement, President Trump asserted, “China needs to negotiate with us, but we do not need to negotiate with China,” and added that “China wants what we have, like other countries, and in other words, they need our money.”