Please consider China Signals It Is Willing to Return to Trade Talks With U.S.
A government policy paper on trade issues with the U.S. released Sunday accused Washington of scuttling the negotiations, which broke down in all but name last month. It said the Trump administration’s “America First” program and use of tariffs are harming the global economy and that China wouldn’t shy away from a trade war if need be.
Throughout the document and at a briefing, the government suggested a willingness to return to negotiations. “What truly matters is how to enhance mutual trust, promote cooperation and manage differences,” the paper said. Vice Commerce Secretary Wang Shouwen told reporters, “We’re willing to adopt a cooperative approach to find a solution.”
The tone, if not the substance, was markedly more measured than the sharp, at times nationalistic rhetoric adopted by state media and some officials in the past three weeks, and Chinese trade experts said the point is to signal talks can resume, though the onus is on the U.S.
China “is expressing its wish to work together,” said Zhang Yansheng, a researcher at the state-backed think tank China Center for International Economic Exchanges.
Three Conditions
- The U.S. must remove “all additional tariffs” levied on Chinese exports
- Chinese purchases of American goods to help reduce the U.S. trade deficit “should be realistic”
- The text of a final agreement should be “balanced.”
That All?
Probably not. There is still a major issue with Huawei.
“Both sides need to make concessions. The concessions can’t all be from one side,” said Mr. Wang, one of China’s negotiators with the U.S.
Nothing Agreed Until Everything is Agreed
Mr. Wang reiterated an argument Chinese officials have made that Beijing didn’t backslide in the talks because no agreement had been completed. “At the negotiating table, everything is up for discussion. Without an agreement, there can be no so-called ‘backtracking,” Mr. Wang said. He then switched to English: “Nothing is agreed until everything is agreed.”
Recall where we last heard that?
It was a line Michel Barnier, the EU’s chief negotiator kept repeating in Brexit negotiations with the UK.
Watch the Reactions
The futures are closed. It will not mean much if they open strong and close that way. That would be the expectation on fluff news like we have seen so many times before about a deal that was supposedly “close”.
It would be more telling to seem futures open lower and close that way, or open higher and close lower.
We do not know how Trump will respond either. He needs a deal as badly as China. And if he does agree to remove all tariffs and opt for a realistic, balanced agreement, then why didn’t we have a deal three weeks ago?
Meanwhile, both sides increased tariffs, and China has threatened to cut off supplies of rare earths.
Victory Party?
Will it be a victory just to return to where we were?
If so, Trump will have to back down as well, not just China.
Mike “Mish” Shedlock
If the Chinese would simply let their currency float, it would solve a lot of problems.
A big BS (bullshit by WSJ!) just like Trump.
25% tariffs got their attention.
50% tariffs can get their respect.
Both sides are playing Russian roulette. Eventually one will find the gun can actually be loaded and fire inadvertently.
Trump to each country of the world: My Way! Or Huawei!
“Trump does not want to negotiate. He just wants every country to obey his order.”
Correct
Join. Exactly and precisely. Trump is not and never has been a negotiator. Negotiators are trustworthy. He is not. Negotiators understand and seek win-win. Trump does not. Negotiators view their counterparts as having rights. Trump does not. There is not art to his deal, only brute force.
Maybe the Chinese are like Churchill said about us, “Americans can always be trusted to do the right thing, once all other possibilities have been exhausted.”
We have legitimate gripes; they have legitimate gripes. Are there enough adults in the room to do a deal at this point? I hope so.
….you mentioned him, Churchill, probably the worst warmonger ever, he is the one who provoked both worldwars, all on his own ….
It would be a victory of sorts to return to where we were. Trump wants to make America great again, like 70 years ago. He has been bullying and sanctioning and strong-arming his way around the globe, telling everyone to capitulate or else. But back in the day when America was great, force was applied behind the scenes, enticements were offered, global institutions were put in place, diplomacy prevailed — the exercise of power was veiled and presented as progress. Now it’s just naked and capricious dictates — not with threats of exercising power, but actual aggression.
The veil has been taken off. Nobody is capitulating. The entire globe is witnessing this revelation of raging impotence on the part of a rogue antagonist.
Trump does not want to negotiate. He just wants every country to obey his order.
We’ve agreed to trade deals before. Then 2 weeks later they start doing the same thing they agreed not to do. We probably do the same thing. Meanwhile, politicians like Diane Feinstein paved the way for her husband to profit from the shift of production to Shanghai.
How much did the US have to pay China for this headline? Well, we’re going to lose another trillion in market cap tommorow, lets offer them 50 billion to run their mouths.
‘marketcap’ has become a fictitious illusion, a fed created Ponzi scheme ! The Dow 400 % up in 10 years , based on what ? Some kind of a psychosis maybe ? Even if we lose 5 trillion tomorrow everything would still be overvalued , in rational terms that is…with or without a fckn trade agreement.
The Plunge Protection Team will be hard at work tomorrow for a big day of gains.