chainski

I think there is a general consensus that China has not allowed the same access to their markets as the US and other countries have. Furthermore, it is clear that there is a lot of IP misappropriation. With some companies like MIcron - is was blatant, and even unfair court treatments. There are also so many knock-offs coming out of China, be it turning on the factory at night or walking across the street, the govt there (and BABA) are doing nothing about it.

Therefore, it makes sense to push for a solid deal.

Unfortunately, the approach that the US has used is far from optimal. One can easily reason that the negotiation team is a C-team at best.

While it might seem aggressive, the long term effect of cutting off Huawei from chips will have a chilling effect on US companies. Chinese companies will be forced to select suppliers that can't be cut off in the future. This will substantially reduce the optimal outcome of free-trade. Thereby increasing costs for the whole - world and decreasing the quality of life for future citizens.

The strategy is not focused on producing the right equilibrium of balance the rewards the US 10 years down the road - but instead, for a short term perception, that may be forgotten 6 weeks from now.

Let's be clear the lead negotiator is an ex US-Steel negotiator if the strategy was so good why are US steel stocks trading at 30% of what they were a year ago? Hint they didn't think long term about the cause and effect of their actions.

As someone that wants to support the administration for being aggressive on China - I wish we had smarter people at the table.