Peter Navarro discusses the Trump administration’s trade agenda and some predictions for the state of the Main Street U.S. economy heading into 2020.
Navarro highlights the completed agreements with South Korea, Japan, China phase-1, and the U.S., Mexico, Canada USMCA agreement and what they can deliver next year.

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It really is quite remarkable that President Trump and the economic team could simultaneously diminish the interests of multinationals, focus on Main Street USA, and still create a situation where Wall Street stocks are growing.
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Perhaps the status of the economy in China is even worse than many have suspected.  An interesting public statement from their State Council today highlights a promise by China to support jobs during their current economic downturn.

Against the backdrop of Hong Kong’s protests toward Beijing oppression, a rebellion of the people against the command authority is the single-most feared action by those in charge of government.  If the economy is in worse position than previously thought, this latest statement might explain some of Beijings’ recent trade and economic concessions.

(Reuters) – China will step up support for employment to cope with rising pressure on job security due to internal and external challenges, the cabinet said on Tuesday, as the world’s second-largest economy slows.
Simultaneous downturns in the services and manufacturing industries pose a major problem for authorities seeking to keep a lid on unemployment and prevent social unrest as economic growth decelerates to near three-decade lows.

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Donald J Trump was the only candidate in 2016 who knew how to use China’s panda playbook against them.  Thus, when you plant your tree in another man’s orchard, don’t be surprised when he charges you to harvest your own apples…

BEIJING (Reuters) – China will lower import tariffs on over 850 products from Jan. 1, including frozen pork and frozen avocado, the finance ministry said.
It will also further lower import tariffs on some information technology products from July 1 next year, said the ministry, in a statement on its website. (link)

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An interesting tweet from President Trump today with a clearly coded message to North Korean Chairman Kim Jong-un.  Within the message President Trump notes an ongoing dialogue with Chinese Chairman Xi Jinping about Kim’s status.

The hostage negotiations happening against the backdrop of a negotiated ransom, the U.S-China “phase-one” trade agreement:

BEIJING (Reuters) – China will make good on a pledge to purchase more than $40 billion per year of U.S. agricultural products under the recently agreed Phase 1 trade deal between the two countries, China’s top agriculture consultancy said on Friday.

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Great interview with United States Trade Representative Robert Lighthizer as he described the goals, objectives and outcomes of the USMCA and U.S-China Phase One agreements.
While answering a question about Wall St. journal criticism of the USMCA, Lighthizer discussed the dynamic of Wall Street -vs- Main Street as part of the bigger picture objective in the revised deal. He avoids the words “globalism” -vs- “nationalism” but the sentiment as described is there.
On China Lighthizer emphasizes the “phase one” deal is really a test to see if it is even possible to have an enforceable trade agreement between a communist state-run economy (China) and a free-market economy (U.S).

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At the same time Beijing is reportedly promising internal reforms to retain access to a vital and necessary U.S. market for Chinese goods, Beijing is threatening Germany if they block Huawei technology from their 5G network China will announce German autos are unsafe for import…. Chancellor Angela Merkel is in a pickle.

According to Bloomberg analysis, German automakers sold approximately seven million cars to China in 2018.  The Chinese Ambassador to Germany said this weekend: ” “If Germany were to take a decision that leads to Huawei’s exclusion from the German market, there will be consequences. The Chinese government will not stand idly by.”

(SCMP) […] The Chinese ambassador in Berlin has stirred up a fresh controversy over the tech giant Huawei after he threatened “consequences” if it was excluded from Germany.

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National Economic Council Chairman Larry Kudlow appears on Fox News for a discussion of the status of the U.S. economy, the USMCA and the U.S-China trade agreement.
The Wall Street GOPe, positioned primarily in the senate, are preparing to punish the administration for their restructuring of global trade against the backdrop of the senate influence over impeachment.

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USTR Robert Lighthizer made a rare appearance in the media to discuss the “big picture”, and some specifics, around the U.S-China phase-one agreement.
Ambassador Lighthizer notes the principle challenge is generating an enforceable set of standards -within a written agreement- between a totally controlled communist economic system (China) and a free-market system (USA).  No other nation has ever tried, and there is no preexisting trade agreement to facilitate a mapping.  What Lighthizer is constructing will be what all nations will start to use going forward.  This is historic stuff.
Arguably, next to President Trump, USTR Lighthizer is one of the most consequential members of the administration. What he is constructing, with the guidance of President Trump, is going to influence generations of Americans.

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[Transcript] MARGARET BRENNAN: This week, the U.S. and China agreed on the first phase of a trade deal that would roll back some American tariffs. It’s expected to be signed in early January. We’re joined now by the U.S. Trade Representative, Robert Lighthizer, the top negotiator in those talks with Chinese officials. Good to have you here.
U.S. TRADE REPRESENTATIVE ROBERT LIGHTHIZER: Thank you for having me, MARGARET.
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Interesting:  Tuesday budget vote. Wednesday Impeachment vote. Thursday USMCA vote.
National Economic Council Chairman Larry Kudlow appears with Maria Bartiromo to discuss the ratification of the USMCA and the U.S-China “phase one” trade deal.

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USTR Lighthizer appeared on CBS to discuss the China agreement, he goes into more detail. That conversation is coming next.
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U.S. Trade Representative Robert Lighthizer has released a two-page summary fact sheet [pdf link here] outlining the “Phase-One” agreement in principal.  From research into the material the principal agreement appears to be an 86-page document covering nine chapters.  The fact sheet covers the top lines of seven chapters:

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