Trump threatens pullout from postal treaty favoring Chinese shippers

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China joined the UPU in 1914, when its economy was nearly entirely agrarian. For instance, American scholar John Mearsheimer, by making a historical analysis of the United States' own behavior as a rising power in the past and then comparing it to Chinese behavior now, argued that China's rise was bound to be hegemonic.

In its first paragraph, the Times paints the treaty simply as something that undercuts American competitors and floods the market with cheap consumer goods, but that's a byproduct of the glacial pace at which the 192-member organization moved as China became a global ecommerce force. American manufacturers can't do what the Chinese do in terms of producing low-price middle of the road quality merchandise.

Chinese Vice-Premier Liu He, one of Xi's top economic aides, told state media on Friday that Beijing and Washington "are contacting each other at present". Part of the treaty also allows China and other countries to ship packages to the United States at lowered rates. However, his administration placed 16 billion tariffs on China in August 2018 after it was known that China supports cyber intrusions into United States computer networks to gain unauthorised access to valuable business information.

The Chinese economy advanced 6.7 percent year-on-year in the second quarter of 2018, easing from a 6.8 percent growth in the previous period.

MCM Musings: Say what you will about Trump, but the Universal Postal Union agreement is ripe for upending as it has contributed to the significant trade imbalance between the USA and China by putting a finger on the scale in favor of Sino-based sellers.

The move to make the Chinese pay more for sending packages to the United States makes sense, according to the Postal Service executives.

The Postal Service applauded the action Wednesday.

Officials stressed that the goal is not to leave the UPU, even as they announced Trump's intention to withdraw from the treaty.

"Should the Trump administration levy tariffs on the remainder of China exports by 25 percent on January 1, 2019, it will be the maximum stress point to force Beijing to have a policy response".

"It's a stunt to distract from the fact that the president promised more tariffs last month and doesn't want to act", Scissors said.

The group said the discounts amount to a subsidy for Chinese shippers that cost the U.S. Postal Service $170 million in 2017.

However, this step to withdraw from the postal union might have a positive impact on the fight against Chinese counterfeits.

It is not clear whether China will retaliate if the United States pulls out of the treaty.

The United States plans to withdraw from the United Nations' Universal Postal Union, which facilitates low-priced distribution of foreign packages throughout the country, as it continues to wage war on Chinese exports.

However, that August memorandum states, "The United States is a party to the current Constitution of the UPU - which was adopted in 1964 - and intends to continue to participate fully in and financially contribute to the UPU, as provided in Article 21 of the UPU Constitution".

Critics of the treaty are excited to see the close to withdrawing.