U.S.-China trade talks are showing signs of détente, says MCC Global's Michelle Caruso-Cabrera

US-China Trade Relations - The US faces a significant trade deficit with China, a problem that has persisted for decades [1] - National security concerns create tension regarding the extent of trade with China, specifically regarding the potential transfer of tools that could threaten US security [1] - Export controls, initially imposed by Biden and later strengthened by Trump, are a key point of contention between the US and China [1] - The US seeks to raise tariffs on Chinese products, potentially by 10-20% or more [1] - China's perspective on what constitutes a "win" in trade talks remains unclear, with the future of TikTok potentially being a factor [1] Chinese Economic Policies and Global Impact - China's economic structure is heavily geared towards production, leading to overcapacity in various industries [1] - Chinese government subsidies enable the production of very cheap EVs (under $25,000) for the EU market [1] - The EU is concerned about potential de-industrialization due to the influx of subsidized Chinese goods [1] - China's domestic consumption is relatively low, contributing to trade imbalances [1] Technology and National Security - The Committee on Foreign Investment in the United States (CFIUS) assesses whether foreign companies can invest in the US, with Nvidia chips being a recent example of scrutiny [1] - China passed a law preventing the export of TikTok's algorithm, posing hurdles to any potential sale of the platform [1] - China controls information flow within its borders, restricting access to platforms like Twitter and Google [1]