Despite Wall Street headline writers trying to frame an opposite reality, President Trump has no disposition toward making a trade deal with China. Conversely, China has no intention of changing the closed and state-controlled structure of their economy. That’s the reality amid a trade dance that is going absolutely no-where.
This quote is priceless: “We can add the Diplomatic war to the Financial war, Currency war and Technology war, that we already have,” John Browning, managing director at brokerage BANDS Financial in Shanghai, said in a note to investors.
The Chinese position is thus:
REUTERS […] The U.S. demand that the Chinese Communist Party fundamentally change how it directs China’s massive economy to shift to a more Western model of free-market capitalism is irrational and misguided, a Chinese diplomat in the United States said.
“What we achieved during the past few decades shows that our system is good for development in China,” the official said, speaking on condition of anonymity.
China would not ask the United States to shift to an economy that relies heavily on state-owned enterprises, or ask it to start fully funding education, as China’s does, he said, so why should Washington expect the same from Beijing?
“We hope to strike an agreement but also accept the differences,” the diplomat added. (read more)
Speaking to reporters in Washington, Trump said: “If we can make a deal, we’re going to make a deal, there’s a really good chance.” “In my opinion China wants to make a deal more than I do,” Trump added. (link)
In an attempt to change their diminishing economic position and create leverage Beijing fires DPRK rockets.
The Commerce Department barred the technology and artificial intelligence companies from doing business with U.S. firms, citing human rights violations of Muslim minority groups in Xinjiang. Chinese officials said the action interfered with China’s sovereignty. (Full Story)
This ongoing dynamic is not going to end….
Communist China and Chairman Xi Jinping are trying to wait-out President Trump hoping he doesn’t get re-elected in 2020. President Trump is using communist China’s strategy of waiting-him-out as an opportunity, and somewhat of a smart excuse, to put more punishment on Beijing.
President Trump has been very clear in his objective. However, President Trump has also been clear that he sees little possibility of any trade-agreement.
There is not going to be a U.S-China trade agreement.