The Trump administration announced a new trade deal with China that includes giving the financial sector greater access to China, a policy that Goldman Sachs has been pushing for years. This aspect of the deal is worth examine given the close ties of globalists in the administration with deep financial sector ties such as key advisor Gary Cohn, Treasury Sec. Mnuchin, and Commerce Sev. Wilbur Ross.
The China Deal
Published May 12, 2017 Fox News
The White House announced Thursday that the U.S. and China have reached an agreement on trade polices related to beef, poultry and natural gas that are expected to increase American exports.
As part of the deal, China will open its borders to U.S. beef. In return, the U.S. has agreed to remove obstacles to China’s imported poultry meat. The United States would also allow U.S. companies to ship liquefied natural gas to China
The biggest points in the 10-point plan deal with the American agriculture and financial sectors, which are being promised greater access in a range of areas, the Wall Street Journal reported. In addition to beef, China agreed to accelerate the process for approving U.S. biotechnology products.
The United States and China will expand trade in beef and chicken and increase access for financial firms, as part of a plan to reduce the massive U.S. trade deficit with Beijing, U.S. Commerce Secretary Wilbur Ross said on Thursday.
The deals are the first tangible results of the 100 days of trade talks that began last month after U.S. President Donald Trump and Chinese President Xi Jinping met in Florida to discuss cooperation between the world’s two largest economies.
Beijing also agreed to issue guidelines by then to allow U.S.-owned card payment services “to begin the licensing process” in a sector where China’s UnionPay system has had a near monopoly. Foreign-owned firms in China will also be able to provide credit rating services.
Commerce Secretary Wilbur Ross hailed the agreement as “a herculean accomplishment” forged in record time.
“This is more than has been done in the whole history of U.S.-China relations on trade,” Ross told reporters Thursday evening at the White House. “Normally trade deals are denominated in multiple years, not tens of days.”
But while the agreement touches on many of the trade barriers American companies have long complained about, it remains to be seen just how far China will go to allow more American exports. Previous administrations have hailed market-opening agreements only to be left disappointed.
“The key in these negotiations is specifics that are enforceable — literally the devil is in the details,” said Scott Mulhauser, the former chief of staff at the U.S. Embassy in Beijing.
Background on Trump Advisors and China
Treasury Secretary Steven Mnuchin
Mnuchin – the son of a former Goldman Sachs partner and the grandson of a Hamptons yacht club co-founder – most recently sat on the board of financial holding company the CIT Group while dabbling in big-name movie and cinema investments. He helped bankroll several commercially successful films, including “Avatar” and “American Sniper.”
Mnuchin previously co-founded investment oversight outfit Dune Capital Management, which at one point was sued by Trump after investing in one of the president-elect’s Chicago real estate projects. He also served as Trump’s campaign finance chairman and helped guide the president-elect’s economic and tax proposals.
Commerce Secretary Wilbur Ross
Ross, meanwhile, made his fortune as a distressed debt investor. He spent decades at investment bank Rothschild Inc., and pumped money into fiscally struggling companies across a variety of sectors, including coal, manufacturing and steel. In 1990, he reportedly was a bondholder for the Trump Taj Mahal casino in Atlantic City, New Jersey, and helped Trump structure a related bankruptcy filing in 1991, according to The New York Times.
Ross is chairman of WL Ross & Co. and was previously a board member for the U.S.-Russia Investment Fund under President Bill Clinton. He also served in an advisory capacity during Trump’s presidential run.
Gayle King Asks Gary Cohn What a ‘Nice, Registered Democrat Boy’ Like Him Is Doing Working in a GOP Admin
CBS host Gayle King asked White House chief economic adviser Gary Cohn on Monday why he would work in a Republican administration as a registered Democrat.
“What’s a nice, registered Democrat boy doing working in a Republican administration?” King asked Cohn, President Trump’s National Economic Council director, on “CBS This Morning.”
“Who worked for Goldman Sachs,” co-host Charlie Rose interjected, referencing Cohn’s former job as president and chief operating officer of the Wall Street giant.
Cohn said that he is working in the Trump administration to drive the president’s agenda to “make America better for all Americans.”
“I know that, but what is it like for you personally? Are you enjoying this job that we hear reports about warring factions within the White House?” King asked. “It’s ‘Game of Thrones.’ It’s ‘House of Cards.’ It’s them versus us. Really, tell us what it’s like for you.”
Cohn pushed back against the narrative that King portrayed, saying Trump encourages opposing viewpoints in his administration.
“The president likes lots of different opinions, which is the exact way that I have worked my entire life,” Cohn said. “I am used to working in an organization where people are allowed to and encouraged to express their opinions and express their views.”
February 10, 2015
Goldman Sachs Group Inc. is exhorting the U.S. to quickly complete a treaty with China to open the long-sheltered market of the world’s most populous nation to American banks and other firms.
Goldman Sachs’s urgency contrasts with another important part of corporate America. Silicon Valley is wary of any deal that wouldn’t address broader issues, including the potential unauthorized use of technology by Chinese partners who then become competitors.
While Wall Street is eager to manage more Chinese money and underwrite more Chinese securities, other companies want negotiations that would also include promises that state-owned firms play by market rules without protection from the government.
Just months ago, Goldman Sachs was warning about a “trade war” with China
February 8, 2017
Goldman Sachs analysts are looking at how a trade war between the US and China would hurt growth in the world’s biggest economies, and the outlook isn’t pretty.
If President Donald Trump imposes punitive tariffs against China of up to 10 per cent, the country’s exports to the US will fall as much as 25 per cent, Ha Jiming, a China vice chairman at Goldman in Hong Kong, said in an article published by China Finance 40 Forum, a non-government research organisation. Under that scenario, the Asian nation’s annual economic growth would decrease by as much as 1 percentage point, he wrote.
Cohn had a large stake in. Chinese bank, which he sold just two months before this deal allowing U.S banks into China went through.
March 16, 2017
The White House economic adviser Gary D. Cohn is selling a significant holding in the world’s largest bank — which happens to be in China — as he clears potential conflicts of interest to serve in his new role.
The stock that Mr. Cohn is selling is in the Industrial and Commercial Bank of China, which with nearly $3.5 trillion in assets is the biggest on the planet, and it would be valued at about $16 million based on Thursday’s trading, according to details of his holdings in a set of documents issued by the Office of Government Ethics.
The Chinese bank position appears to be the largest stock, private equity or hedge fund holding — apart from his shares in Goldman Sachs, where he was president — that Mr. Cohn will have to sell because of his new job. The timing of his initial purchase of the Industrial and Commercial Bank shares and of his planned sale are not clear.