Live on Bloomberg TV

00:00TIM, THANK YOU VERY MUCH FOR JOINING US. THE RHETORIC ON BOTH SIDES ON THESE TRADE TALKS HAS GONE INTO SECURITY ISSUES AND PRETTY MUCH INTO EVERYTHING. WHAT DOES -- WHAT IS THE RISK OF ENDURING DAMAGE BETWEEN RELATIONSHIP OF U.S. AND CHINA? TIMOTHY: IT IS CLEAR THE RELATIONSHIP WILL NOT BE QUITE THE SAME AS IT WAS BEFORE. BOTH COUNTRIES RECOGNIZED THAT THERE NEEDS TO BE A VERY SIGNIFICANT RECALIBRATION, NEW RULES OF ENGAGEMENT OF HOW WE DEAL WITH TRADE, NATIONAL SECURITY, LAW ENFORCEMENT AND OTHER ISSUES. SO THERE IS QUITE A LOT THAT HAS TO BE SORTED OUT BETWEEN THESE COUNTRIES. PAUL: WE WILL BE IN WASHINGTON ON THE 10TH OF OCTOBER. WHAT IS THE REALISTIC BEST OUTCOME WE CAN HOPE FOR THIS TIME AROUND? TIM: WE NEED TO THINK ABOUT WHAT ARE THE ISSUES BEING NEGOTIATED AND WHAT IS A BROADER CONTEXT. IN TERMS OF THE ISSUES, I WOULD LUMP THEM INTO THREE BASKETS. THE FIRST WOULD BE A VERY LONG LIST OF ITEMS WHERE THE U.S. BELIEVES THAT CHINA HAS MADE COMMITMENTS IN THE PAST AND IS NOT FULFILLED THEM. THERE IS A FIVE-PAGE SINGLE SPADE LIST. -- SPACED LIST. I BELIEVE NEGOTIATORS HAVE MADE QUITE A BIT OF PROGRESS IN TALKING THROUGH THAT LIST. THE SECOND BASKET OF ISSUES WOULD BE AREAS WHERE CHINA HAS NOT MADE ANY COMMITMENTS, BUT IT IS THE VIEW OF THE U.S. THAT THE WORLD HAS CHANGED SINCE CHINA NEGOTIATED AND CERTAIN EXISTING COMMITMENTS ARE NOT FAIR ANYMORE. FOR EXAMPLE, CHINA'S INTERNET COMPANIES ARE ALLOWED TO DO QUITE A BIT OF BUSINESS IN THE U.S. WHAT AMERICAN INTERNET COMPANIES ARE LARGELY BLOCKED FROM DOING THE SAME IN CHINA. THESE ARE DISREGARDED IS NOT FAIR, NOT RECIPROCAL, AND THE U.S. BELIEVES THESE THINGS NEED TO BE NEGOTIATED. THE THIRD BASKET IS PROBABLY THE MOST DIFFICULT, AND THAT WOULD REFLECT AREAS WHERE OUR TWO ECONOMIC SYSTEMS ARE DIFFERENT. AND BECAUSE OF THAT WE DO NOT COMPETE IN QUITE THE SAME WAY. SO YOU MAY HAVE AMERICAN COMPANIES THAT ARE MARKET-ORIENTED COMPETING WITH CHINESE ENTERPRISES THAT RECEIVE SUBSTANTIAL SUPPORT FROM THE STATE AND IT CREATES AN UNEVEN COMPETITIVE CONDITIONS. THIS THIRD BASKET OF ISSUES IS THE MOST DIFFICULT. IT GOES TO THE HEART OF HOW THE CHINESE ECONOMY FEELS IT HAS MADE SO MUCH PROGRESS, BUT IT ALSO REFLECTS AREAS WHERE THE U.S. THINKS THE CURRENT COMPETITIVE CONDITIONS ARE NOT FAIR AND SOMETHING NEEDS TO BE DONE TO CHANGE THAT. SHERY: BUT I WONDER HOW DOMESTIC POLITICS WILL PLAY INTO THE TRADE NEGOTIATIONS. WE HAVE PRESIDENT TRUMP AT THE MOMENT TWEETING THAT THE IMPEACHMENT INQUIRY IS A COUP INTENDED TO TAKE AWAY THE POWER OF THE PEOPLE, THEIR VOTE, THEIR FREEDOM. SO, DOES THE IMPEACHMENT DRAMA PLAYING OUT IN WASHINGTON GIVE MORE LEVERAGE TO CHINA FOR THE U.S. DO WANT TO MAKE A DEAL? TIM: WELL, I THINK YOU HAVE THE DISCUSSION ABOUT IMPEACHMENT, YOU ALSO HAVE THE UPCOMING ELECTION. I THINK THAT ON THE ONE HAND, IT IS VERY MUCH IN THE INTEREST OF BOTH COUNTRIES TO TRY AND CONCLUDE THE DEAL AS SOON AS POSSIBLE. THERE'S A LOT OF LASTING DAMAGE BEING DONE RIGHT NOW, AND ALSO IT IS NOT A COMFORTABLE POSITION TO BE A LEADER AND HAVE THE SITUATION NOT UNDER CONTROL. ON THE OTHER HAND THE CHINESE MIGHT THINK THAT AS THEY GET CLOSER TO THE ELECTION PERHAPS PRESIDENT TRUMP WILL FEEL A NEED FOR A DEAL AND WILL SOFTEN HIS POSITION IN SOME AREAS. SO I THINK THERE IS SOME INTEREST ON THE PART OF CHINA TO WAIT AND SEE A LITTLE BIT. AT THE SAME TIME CHINA MIGHT HAVE CONCERNS ABOUT WHAT IS THE OVERALL OBJECTIVE OF THE UNITED STATES AND CHINA RELATIONS. THERE ARE MANY IN CHINA WHO THINK THAT IN ADDITION TO THIS TRADE FRICTION, THERE ARE ALSO DIFFERENT VIEWS ABOUT NATIONAL SECURITY AND UNTIL THEY REALLY

No schedule data available.

U.S.-China Relationship Won’t Be Same as it Was, Says AmCham China’s Stratford

Tim Stratford, chairman at the American Chamber of Commerce in China, discusses the U.S.-China trade talks, the relationship between the two countries and where he sees the negotiations heading. He speaks on “Bloomberg Daybreak: Asia.” (Source: Bloomberg)

More From Daybreak Asia
All episodes and clips

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips