The lengthy list of commitments by China to purchase American goods reminds me of US-Japan trade negotiations decades ago which had similar haggling.... #USChinatrade 1/
Here are excerpts of Kakuei Tanaka and Kissinger discussing how to get the bi-lateral deficit with Japan down in the early 1970s, in the early days of the 'Japan threat'.... /2
“I have a list in front of me detailing the items that can be increased. Gas turbine generators, for example.” Tanaka tells Kissinger Japan wants to get the previous year’s $3.2bn deficit under $3bn, although he warns "it could take some years." /3
Tanaka then canvasses the idea of Tokyo buying more arms from the US. "This is now an estimated $750m. (Let’s) make it $850m." Obviously this is not of the China deal /4”
Tanaka hits a snag on US demands for oranges to be imported in Japan’s off-season. "Not possible", so suggests an idea for “mixed blending orange prices.” How about more cattle instead? “It is now 5,000yen a head. We could consider going up two or three times that amount." /5
Kissinger, of course, hates both dealing with the Japanese and trade. But later, he writes approvingly to Nixon that Tanaka has suggested Japan buy "grain, enriched uranium, aircraft, military equipment and other agricultural and industrial equipment to meet our needs." /6
So at the same time as the US urged both Japan and China to become market economies, DC demanded they use their statist powers for short term fixes. The big difference being that China is a military rival where Japan was a virtual protectorate. /7
Self-promotion alert. All this detail and much much more contained in this book: amazon.com/Asias-Reckonin… /8 ENDS.
