CTH readers are well versed in the dynamics of the Panda mask -vs- Dragon motives of China. Therefore we are able to discuss events without the MSM financial filter; which is narrated specifically to the benefit of multinational interests. Always keep that in mind.
Everything needed to understand the latest panda narrative from Beijing is identified in this simple paragraph:
(Beijing) […] The talks were supposed to have resumed this month but China’s commerce ministry said Vice Premier Liu He, Beijing’s pointman on trade, agreed to October in a phone call with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday. (more)
First, anything from Vice Premier Liu He is panda-speak; he is a tool in the process of Chinese narrative engineering. All former trade negotiation authority held by Liu He was stripped by Chairman Xi Jinping. Commerce Minister Zhong Shan is the real voice of Xi and the Beijing authority.
Second, what exactly is Beijing selling? An “October phone call”…. and that manipulates markets for the multinationals on Wall Street. A friggin’ announcement of a phone call?
Beijing is attempting to stop the financial bleed; the organization and planning of exits from the Chinese manufacturing system. Notice the U.S. media ran to the typeset pushing quoted reports from Beijing, not quoting reports from the USTR office or U.S. trade team. Again, the quote from the Associated Foreign Press (AFP):
…”China and the United States will resume trade talks in Washington in early October, Beijing said on Thursday”…
President Trump will not block, refute or diminish, this specifically sold Beijing narrative because it increases the U.S. stock market valuation. However, no-one who really pays attention to the dance should put any weight behind the announcement. It’s pure panda.
The U.S. position is the same. U.S. interests doing business in China should ‘get out’. Those who choose to remain in China; and/or those who choose to join with Beijing in selling false-hope in a temporary effort to prop up their multinational stock values; will eventually run into the brick wall of reality.
We can discuss this here, because the dance has been so visible for so long we know the music before it plays…. ie. ‘conduct your affairs accordingly’.
Today’s jump in the stock market; the part centered around this announcement from Beijing; is based on a false premise.
Beijing is bleeding cash. Beijing is attempting to get to 2020 and will deploy all resources to eliminate President Trump. Beijing is trying to save their economic model and stop the exodus from their manufacturing base.
There will be no U.S-China trade deal.
Any U.S. corporation who makes a decision based on the false-hope implied in the Chinese messaging is going to hit a world of hurt when it all comes crashing down.
Don’t expect any sympathies from these pages.