... to get ready for the next set of negotiations?

So yes, they, in Korea last October, they concluded a trade truce, which basically, w- basically both countries agreed to reduce their tariffs.

China agreed to resume its exports of critical minerals and magnets to the United States.

We agreed to put on hold some trade measures we were looking to impose.

Um, and, um, both sides committed to work towards stabilization of this relationship.

Now, both sides have great interest in stabilization and in not, not in an escalating trade war right now.

For our president, as he approaches, and his party approaches midterm elections, the issue of inflation and tariffs have been quite unpopular with the American public, so he very much w- doesn't wanna keep raising tariffs.

So answer any one of those questions you like.

I mean, both with respect to the ongoing 301 investigations, the summit, you know, ramifications, et cetera.

Sure.

And I'd also just like to include just a few related comments I'm hearing from other Asian trading partners as well, who I also have the opportunity to meet with over the past couple of weeks.

So just in short, I think a phrase I kept hearing in Beijing is that we're like in a new phase of U.S.-China relations now.

My sense is, and I'm going to make a lot of generalizations here, is they're very pleased with how the summit came out.

In Beijing, the folks that we interact with, they're talking about this new framing of the relationship.

which is comprehensive strategic stabilization.

It's going

But what about speculation about a board of trade? Are China and the United States aiming to find a managed trade solution?

Right.

So when we're talking about particularly economic deliverables for this upcoming summit, again, I, I wouldn't be surprised if there was an extension to the October deadline for the trade truce.

Second, I am expecting that China will announce mega purchases of US agriculture, airplanes, airplane parts, um, and other products.

Our president loves big numbers, and for China, it's easier to announce purchases than it is to undertake kind of structural reforms which, frankly, I think are really off the table for the foreseeable future.

But third, the US is also seeking the establishment of a board of trade, and, um, in terms of how USTR Greer describes this board, he has used the term managed trade in non-sensitive sectors.

So the way I interpret this, that would mean the board of trade will deal with... well, won't deal with products like critical minerals or semiconductors or AI, you know, and those types of products, but will focus on more of the kind of normal products or the, the types of trade that's going on between the US and, and China that is continuing despite de-risking efforts.

Will that mean more exports to the United States and less to other markets? What, what do you s- what do you see the picture as being?

I- is this ratcheting trade war gonna change that dynamic, change that relationship in any meaningful way?

Um, I think so.

I think there are long-term implications for, um, keep, you know, the c- the continuous pressure we're putting on these countries in the trade area.

Both Korea and Japan have been, v- you know, strong allies and on the economic front, have been partners on our economic security agenda, including trying to create and, uh, maintain resilient supply chains and bolstering cooperation on shipbuilding and energy and semiconductors.

So in some ways, we're, we're, we're missing the, the larger picture and I worry that these countries are gonna look at us differently and treat us differently going forward.

Even if they're able to reach a deal on August 1, this has not been a great experience for them.

Is that a, a concern that you share?

It's a concern, but I'm not overly concerned in that many countries in Asia have their own problems with China and very much want to maintain a relationship with the United States in order to reduce their dependence on China.