Economic Idea 11: Solve the US-China trade conflict - Have the US government promote investment from China into the United States - Have intellectual property infridgement by US courts made legal in Chinese courts - Make a trade deal

When did the US and China trade war start?

$34 billion would start July 6, 2018, with a further $16 billion to begin at a later date. China's Commerce Ministry accused the United States of launching a trade war and said China would respond in kind with similar tariffs for US imports, starting on July 6, 2018.

Why did Trump impose tariffs?

Trump stated that the tariffs would be imposed due to Chinese theft of U.S intellectual property. Trump said that his planned tariffs on Chinese imports would make the United States "a much stronger, much richer nation". However, the steps toward imposing the tariffs led to increased concerns of a global trade war.

Proposal:

1. Promote the American investors visa program in China at $9 billion per year budget by the US commerce department to get $1.5 trillion per year of investment from China into the United States.

We implement nationwide television ads in China to promote investment from Chinese investors into the United States, with approval from China.

The numbers:

Over 90% of investors into the American investors visa program already come from China.
China with a population of 1.3 billion people offers massive investment opportunities for Chinese investors to invest into the United States.

If it costs the United States $3,000 per gained investor then on a $9 billion per year budget for promoting United States investment by Chinese investors, yields 3 million new investors per year into the United States. And each investor brings in $500,000 of investment into the United States and creates at least 5 new American jobs, then we produce on this $9 billion budget per year, $1.5 trillion of investment per year into the US from China, plus 15 million new American jobs per year yielding (at $20,000 in tax revenues per job): $300 billion per year of new government revenues.

So we promote American investment in China for a $9 billion per year budget, yielding $300 billion per year of government revenues and 15 million more jobs per year.

The US government can also promote the same way, investment from Europe into the United States if they have a trade dispute or simply to promote the US economy.

2. Intellectual property infridgement in China by Chinese companies on US companies, they are made legal by US courts in China. In other words, a US company can file a lawsuit towards a Chinese company in the United States for intellectual property infridgement and Chinese courts execute the decision by US courts on paying damages, or intellectual property infridgement claims made by the US companies towards Chinese companies are made legal in Chinese courts upon decision by US courts.

This should solve the intellectual property issue between China  and the United States.

3. Both countries agree to remove all import taxes between China and the United States. If there are no import taxes levied between China and the United States, then trade between China and the US will boom, as well as investment flowing between both countries. Chinese and US stock markets will boom again. The trade conflict is over!

This 3-step plan can be part of US negotiations with China.



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