We are about to see the subtle approach used by China to try to bend the White House towards easing up on trade tariffs. China has hired lobbyists here in Washington to start a push to persuade lawmakers and the White House to change its mind about Chinese tariffs. They are planning an assault like no other, coordinated with business leaders who operate in China. Cooperate or we will make life more interesting for you in China. Companies there are used to this kind of thing, so Robert Swan, Chuck Robbins and Ken Cook will be finding excuses for coming to Washington to chat with their Congressional leaders and to have dinner with their White House contacts. They have probably already talked to them on the phone. Those tariffs must be really hurting.
I hasten to mention that this is all legal and above board, and that is the way the Chinese want us to see it. Unlike the Russians who started political groups, created fake news, and bought help with ads for some questionable groups, the Chinese like to be seen as complying with the laws of the land. They apply pressure subtly and do not want to get caught doing otherwise.
The White House may offer them another alternative: make your goods in the US, where labor rates are three-four times what they are in China The argument is Chinese rates are rising at a fairly good clip, with transportation costs increasing too. No tariffs either. China will be responding to those arguments with steady labor costs and more efficient transport through all those ports it is buying up. They can pressure shipping in the South China Sea and make it tough to not trade with China, using Chinese approved transport. They will try to strangle, or buy, the competition. All that is legal.
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