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‘Browbeating is not a great diplomatic strategy’: CNN’s Jim Sciutto on China-US tariff negotiations

Wall Street really being rocked here as they're watching what is happening in this trade war between the U.S. and China.

Many, many concerns as we see this escalating trade war, this is a top investor writing in a new report.

In the last few days, we have had many conversations with macro fund managers, and their concern is that the White House is not acting rationally, but rather on ideology.

Those words dropping as the White House just moments ago had this to say about the escalating trade war with China.

drop [drɑp] v. 无意中说出

The president, as I said from the podium just a few days ago when I was here, would be gracious if China intends to make a deal with the United States.
 

gracious [ˋgreʃəs] adj. 亲切的;  仁慈的；体恤的

If China continues to retaliate, it's not good for China. But the president has made it very clearhe's open to a deal with China.

Why is he optimistic that China is going to make a dealor wants to make a deal. If they're not talking, where is that optimism?

He's optimistic.

The White House not giving much more than just the president is optimistic. The basis for that still unclear here is where the trade war stands right now.

145 going up against 125. These are the tariffs betweenthe world’s two biggest economies. And here's another number $4700 or about $400 per month.
 
That is how much more money. Yale's now estimating, the Yale budget lab. The President Trump's tariffs are going to cost average household each year.

And with just hours left in trading the Dow right now up. You're seeing that swing here going into the afternoon up almost 650 points.

but it was up and down there throughout earlier in the day with it now we have CNN business editor at large Richard Quest.

We have CNN chief national security analyst Jim Sciutto as well. Richard, a key economic gauge, the consumer sentiment now at its second lowest level on record going back to 1952.

Why? We shouldn't be surprised with all that's coming out and all the worries about tariff It's not just that. It's the complexity of everything else as well.

the changes within the federal government, the worries about job losses, the worries about a slowing economy, higher inflation, and eventually you get these what's known as soft data.

There, surveys like the Michigan survey, consumer sentiment. And it's a really worrying number because at some point, these sentiment surveys feed into the hard data of real consumer spending.

And we know this from history and precedent. That's what happens. So when we see a number as bad as this one, it is only a matter of time unless anything else changes, that would suddenly make people more cheerful.

Look at that chart, I mean, just look at it. Unless people suddenly become more cheerful. Why would this not translate into spending.

You see that consumer lab that that bust andthe lab fromYale, that number of 4,700 that is providing you don't start substituting goodsin other words, pre-substitution if we just continue as we are now.

But of course people will start to substitute, they will find other goods. And as the Christmas Tree Association said a moment or two ago, it's going to be very difficult to find substitution of many things that we currently get from China.

Yeah. You'll be surprised just how much we get exclusively from China. And Jim, I'm really curious to get your perspective on the White House's handling of the situation.

Not so much the tariffs that have been announced but this reporting that the White House that officials have made clear to Beijing that they want XI to ask for a call with Trump.

Trump hasn't reached out directly.  What do you make of that approach?  And the White House saying they want Xi to reach out for. Can you get any more high school in matters of state?

It's ridiculous. Call me! Jim. Yeah. And listen, what's interesting is, as I was reporting yesterday the Chinese impression is that they are willing to at least negotiate, not necessarily on Donald Trump' term, but to talk.

But their impression is that the U.S. is not open channels and not made an effort to open up channels to allow that. So now you have the U.S. president say, well, you know, I'm not going to open those channels. China has to open them first.

It's kind of ridiculous at the end of the day, because you are playing with the interests of American consumers, Chinese consumers, etc..

The other point I would make about China's reaction today in it not quite meeting U.S. tariffs, 145% U.S. China goes to 125.

And in Xi's statement, he says we're going to 125 in response. That's as high as we're going because this is getting a little ridiculous, right.

And that's a that's both a signal to say we're not going to get caught up in this tit for tat to the degree that the president is, but it's also an opening to say, we're capping this for now, and that perhaps offers a way forwards that we could begin talking about how to bring these down.

tit for tat 以牙還牙

You've lived in China, you've covered China for some times now, as we're looking at this question of who's going to blink first with two very different political systems, what is your gauge on this?

blink [blɪŋk] v. 放棄, 打退堂鼓; to waver or back down, as in a contest of wills

gauge [gedʒ] n. 估计（或判断）方法

Different systems. Listen, one's a democracy. One is not. One is a single party, very much not a democracy, but China does have politics and Chinese leaders do not want to be seen.

We were talking about this yesterday, I believe, do not want to be seen as capitulating to America.

capitulate [kəˋpɪtʃə͵let] v.（有条件地）投降[（+to）]；屈从，停止反抗[（+to）]

That that is not good politics for a Chinese leader, long colonial history to go back. We could talk for hours, but they don't want to be seen as kowtowing to the West here.

kowtow [ˋkaʊˋtaʊ] v. 叩头；卑躬屈膝

So the browbeating is not a great diplomatic strategy, and we've seen that in the past as well. Now, we should say Donald Trump mixes in with the tariff, browbeating some comments about how good a friend he is with Xi. But we'll see if the door has been closed for now or if there's a little bit of opening and perhaps they start opening those channels.

browbeat [ˋbraʊ͵bit] v. 恫吓

Richard, it's interesting to explore the power that the EU has now, because they can tip the scales in terms of how impactful these tariffs will be for either nation, depending on where negotiations land.

So you've got the Spanish prime minister in Beijing. You've got the EU basically saying, well, we're going to start looking at other markets.

I think this will most certainly a huge boost to China, EU relations, to try and complete some form of trade agreement, because everybody is now wanting to circumvent navigate the United States.

circumvent [͵sɝkəmˋvɛnt] v. 规避；防止……发生

Now you can't up to a point. There are certain things. There are certain, inalienable bonds of trade betweenthe EU and the US.

inalienable [ɪnˋeljənəb!] adj. 不可剥夺的; 不可分割的

That doesn't mean to say you can't reduce your reliance on just as much as the U.S. is now saying we want to reduce our reliance on China. We want to make sure we are no longer strategically dependent.

The EU absolutely is saying, is there a deal to be done with Brazil and Mercosur?  Is there a deal to be done with ASEAN, a stronger one.

Jim, can I ask, can I just ask Jim, do you think sorry, guys, but do you think that the Xi’s statementis actually a sort of a not a white flag, but just a sort of an olive branch that both sides can now take to move forward.

olive branch（象征和平的）橄榄枝；和解的建议（或姿态）

I think it has two sides to it. One, it's a bit of a message to the US to say, this is silly, this is getting silly.

We're not going to play this game of chicken. But XI Jinping also by not going right up to the level of US tariffs.

game of chicken  胆小鬼赛局

I think one can look at that as a small opening for discus both of them want to talk. now the question is, I suppose, who picks up the phone first.

That's where we are. You see Boris behind us. That's what happens when you get two anchors who are also your guests.

We'll just hijack the whole thing. She did it right away. Just so you know, I only answer. No objections here over who calls who first or who asks what questions.

It's a fun conversation and we appreciate it. Richard Quest, Jim Sciutto, thank you both.