Xi Jinping wants some respect, dammit.
In his first comments on the imperiled “Phase One” trade deal between the world’s two largest economies, the Chinese strongman on Friday reiterated the familiar talking point that his negotiators are seeking an agreement that’s based “on mutual respect and equality”.
He made the remarks during a meeting with a hodgepodge of visitors to the country, including Henry Kissinger who, on Thursday, fretted that the US and China are “in the foothills of a Cold War”.
Hear Kissinger’s remarks: ‘Cautious Optimism’, ‘Confusion’ Around US-China Trade
“We didn’t initiate this trade war and this isn’t something we want”, Xi went on to say Friday, before reminding those in attendance that despite not having started the fight, and not being particularly keen on perpetuating it, China will “fight back when necessary”.
“But we have been working actively to try not to have a trade war”, he emphasized.
The problem for Beijing is that Trump has repeatedly insisted that no deal can be “equal”, per se, because of the myriad historical injustices China has foisted upon US citizens. Or at least that’s the line being pushed by Peter Navarro and other hardliners. That often finds expression on Trump’s Twitter feed and during public remarks.
This week, the market was bombarded with competing trade headlines that ranged from the overtly dour (e.g., the “Phase One” trade deal is unreachable in 2019) to the reasonably upbeat (e.g., Liu He’s “cautiously optimistic” comments during a dinner in Beijing on Wednesday) to somewhere in between (e.g., reports that while “nothing big” is coming next month, the December 15 tariff escalation will likely be delayed).
Meanwhile, the Hong Kong situation continues to cast a pall over sentiment. On Friday, a characteristically overwrought Xinhua commentary accuses the US Congress and “some politicians” of “recklessness” in meddling in Hong Kong’s affairs.
“[A] hegemonic black hand [is] disguising inhuman violence as pursuit of human rights and democracy”, Xinhua declared. The piece also repeated the threat of “strong” retaliation.
Getting back to Xi, he told visitors that China is “just trying to restore our place and role in the world rather than reliving the humiliating days of [the] semi-colonial and semi-feudal era”.
“In those days there were signs in Shanghai saying Chinese and dogs are not allowed inside — and we will not relive those days again”, he added.
