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University of Illinois Trade Negotiation Strategy with Chinese Counterpart MEMO

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I’m attaching an edited memorandom. All that needs to be done is to ADD 3 or 4 sentences to each of the paragraphs.Please don’t change anything that is already written. The edited railroad article is the highlight to what the memorandum is discusiing.

Below was the original question

:You are an East African country whose economy is a mixture of agricultural and industrial activities, with hardly any activity in other areas (software, financial services, etc.), similar to Uganda. You treasure your relationship with China, but for good reason distrust the Chinese, who have consistently wanted your country to increase its debt to China and have demanded terms that you know you cannot meet (for instance, high interest on medium-term recourse loans where your infrastructure is put at risk as collateral). If you lose your relationship with China, it will be catastrophic for your economy. However, if you give the Chinese what they want, you will slowly sacrifice what little infrastructure and natural resource extractive rights you currently enjoy. There must be a better path.

Construct a one-page memo to your most senior diplomat who is headed to Beijing in a few weeks to meet with a senior counterpart in the Chinese Communist Party. What should he emphasize? What tactics should be employ? What questions should he explore? What should be avoid offering if they demand it? What would you do to differentiate yourself so you and other East African countries are not coaxed into a “race to the bottom” offering better and better terms to China? Finally, and importantly, how will this advice impact your ability to trade with China in the future and what can you do to stand firm on certain points while still salvaging a good trade relationship with China.

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