Truth’s trip to the U.S. shows the reduction of British ambitions

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Hello from Washington, after the unexpected acceleration of the consumer price index in June, all eyes are again on inflation data.Numbers will reignite fierce debate Driven by ultra-loose fiscal and monetary policies, there is a risk of out-of-control prices.

After the British Minister of Trade Liz Truss paid a five-day visit to the United States, our main content today is about Anglo-US trade relations. Concession waters Have geopolitical tensions affected foreign investors’ interest in Chinese stocks?

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Major events have been put on hold, but progress is still possible

Somewhat surprisingly, Liz Truss, the British Minister of Trade, is in Washington.Earlier this week We write from Brussels Regarding the strange change in the direction of British trade policy after the United Kingdom left the European Union. Today, we want to discuss this subject in the context of transatlantic relations, where there is not much change in direction, but the slow acceptance of the almost dead trade agreement and the subtle reconstruction of ambition.

This will be the first time Truth has crossed the pond since Joe Bye logged into the White House, so this time she met with his U.S. Trade Representative Catherine Tay instead of Bob Lighthizer. However, this is not their first meeting, which is why this trip is a bit surprising-they recently met in London.There, Tai gave Truss a gift. Tai had flown to Brussels and London, and surprised the diplomat by making suggestions from both sides. Eliminate Airbus/Boeing tariffs And continue to live.

But although Washington’s incentive to abandon tariffs on Scotch whisky allowed Truss to win, the road ahead is slow.

To put it bluntly, since the Trump administration stepped down, there have been no trade negotiations between Britain and the United States, and the Biden team has repeatedly made it clear that it is not interested in reaching any new deals.The Trade Promotion Agency has run out, so the UK is standing Chance is small Accomplish anything.For some time, Truss has been cleverly briefed on this, including a recent article in the Sunday Telegraph in the UK before her visit to Washington, announcing that a trade agreement would be reached by 2023. Will be tricky(This is not news to anyone in Washington, DC or anyone who follows trade, but it is indeed earlier than the story that her journalists might be afraid to declare the trade dead). The “Daily Telegraph” reported that Truss is now “fighting a protracted war” and accepts the possibility of reaching an agreement before the midterm elections in the United States. Obviously, this is a huge shift from the time when British Prime Minister Boris Johnson touted that a quick deal with the United States was one of the biggest prizes for Brexit, and it was also different from the time when British officials hoped that the agreement was nearing completion. Trump, then “Bidenization” (that is, workers’ rights and green things can be added).

So, what will Truss try to get from the US visit? It is worth noting that the first task of the United States is to keep Britain and other allies in step on the China issue. After the settlement of the Airbus/Boeing negotiations, there are still many details to be resolved-especially the various vague promises of cooperative solutions to non-market economy issues will actually look like. British officials said that the Truss-Tai meeting will focus on how to combat “market-distorting trade practices.”

In the UK, with the Scotch whisky industry no longer knocking at its doors, Truss is free to advocate for another British country-Wales. Since the mad cow disease panic in the late 1980s, mutton produced by its famous sheep farmer has been banned from entering the United States, and Truss has been trying to lobby the ban to be overturned.

There are also many discussions about digital trade. Terrass was originally scheduled to discuss with Congressional Democrats and technology industry representatives how the Anglo-American agreement “sets the gold standard for digital trade”, and the Department of International Trade has been touting the great value of the British technology industry. She will also travel to the West Coast to discuss the technology there. People meet. This is relatively interesting because the United States may reach an independent digital trade agreement with the United Kingdom as it did with Japan last year. Many trade observers in Washington believe that these deals are low-hanging fruit in terms of agreements with Asia (not yet full-scale trade agreements) — if the UK wants to, it may be pushing to open the door to accomplish something.

Another interesting thing is Truth’s new understanding of unions, which seems to be inconsistent with the history of her party (the Conservative Party), but Yes Taihe’s “worker-centered trade policy” may be very popular. While in Washington, Truss met with Richard Trumka, chairman of the AFL-CIO union, to discuss the issues of protecting manufacturing and benefiting workers.

All in all, Trade Secrets was told not to expect any major news from this trip, which seems more like Truss wants to make friends in Washington and the West Coast than anything else. Perhaps playing long-term games is the move. Especially when it seems that there is no choice but to do so.

Concession waters

Earlier this week, we studied the possible consequences if Beijing implements a plan that allows Chinese savers to invest up to $50,000 overseas. Today we take a look at the other side of the coin-foreign investors’ interest in Chinese stocks. We believe that demand may be eased by increased geopolitical tensions, especially during Donald Trump’s presidency.

However, as shown in the chart below, when Trump was in the White House, foreign demand for onshore stocks actually increased. As for 2021? It looks like another harvest year. Claire Jones

Trade ties

Have an interesting report From the U.S. Government Accountability Office, which found that most companies “Conflict Minerals” Supply ChainIt is expected that the pressure on companies operating on both sides of the Atlantic will increase in this area in the next few years.

Joe Biden is Set as warning American company Increased risk of operating in Hong Kong. Brussels finally Unveil its Suitable for 55 drive. Although the name continues to drive us crazy, we applaud the EU’s ambition to cut emissions by more than half by 2030.We love this Review John Schofflin’s Deal with the enemyThis book looks at the cold relationship between France and Britain in the 18th century, and aims to prove that geopolitical tensions between major trading nations are nothing new.

Nikkei report ($, subscription required) Fujifilm Holdings has warned Japanese government A research department Chinese military May anti-flu drugs claim intellectual property rights Avigan As a Covid-19 treatment.Publisher is support The censorship and police intervention at the annual book fair in Hong Kong was once a symbol of freedom of speech, but now it is the epitome of the National Security Act. Amy Williams and Claire Jones

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