While Trump administration adviser Larry Kudlow indicated this week that the US president was still on board for a meeting with Chinese President Xi Jinping late next month, hopes that it will occasion a trade breakthrough are growing dimmer.
After it was reported on Wednesday that the White House was refusing even to engage China on trade issues until it responds to demands with a concrete offer, there is now word that officials are prepared to take trade off the agenda of Donald Trump’s get-together with Xi.
Bloomberg reported the threat on Friday, citing sources familiar with the matter who added that, on the bright side, the administration likely won’t cancel the meeting altogether.
The two leaders are expected to talk on the sidelines of the Group of Twenty summit in Argentina next month, less than two months before a deadline for US tariffs on Chinese goods to increase substantially.
Despite the reasons for pessimism, the recent volatility in the US stock market – which is veering into correction territory with growing speculation about a coming bear market – could be a wild card in the US administration’s calculation. President Trump has touted the strong performance of US stocks in the face of trade war concerns as vindication that his policy will succeed without significant domestic collateral damage.
The trade war aside, Trump frequently cites stock performance as a measure of his success as president. Finding on off-ramp for the trade conflict could provide a boost to markets.
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Actually, the opinion I form, if I was the one calling the shots in Zhongnanhai that is, is that I would reject bluntly this meeting.
Knowing ourselves for what we are, and regardless if CCP, KMT, DDP, or whatever is in power, we’re always the ones to appear weak in these matters.
Sorry Xi, accepting this neet us just not my cup of Oolong tea…
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Actually, the opinion I form, if I was the one calling the shots in Zhongnanhai that is, is that I would reject bluntly this meeting.
Knowing ourselves for what we are, and regardless if CCP, KMT, DDP, or whatever is in power, we’re always the ones to appear weak in these matters.
Sorry Xi, accepting this neet us just not my cup of Oolong tea…
.
Kudlow had to save face. Nothing was going to happen. So he is setting up the scene for a cancellation because China has not made a "substantive" offer. Of course not. China remembers the last this happened was with Hillary Clinton when an offer was made but the White House, to China’s aghast, released it to the media. This bunch under Trump has no diplomatic or negotiating skills. They demand and expect the other side to concede. Well this can only be done a few times and people get wise. Plus China now is not China 10 years ago. And it will be a different China in another 10 years. Kudlow, Navarro and the usual suspects may soon eat humble pie with no results. Trump can only further raise the stakes and include an arms race and also escalation of military tensions. Where will this lead?
Kudlow had to save face. Nothing was going to happen. So he is setting up the scene for a cancellation because China has not made a "substantive" offer. Of course not. China remembers the last this happened was with Hillary Clinton when an offer was made but the White House, to China’s aghast, released it to the media. This bunch under Trump has no diplomatic or negotiating skills. They demand and expect the other side to concede. Well this can only be done a few times and people get wise. Plus China now is not China 10 years ago. And it will be a different China in another 10 years. Kudlow, Navarro and the usual suspects may soon eat humble pie with no results. Trump can only further raise the stakes and include an arms race and also escalation of military tensions. Where will this lead?
Mr. Goldman is always worth the read, and this is no exception.
Mr. Goldman is always worth the read, and this is no exception.
A deal with the US can only last until the US thinks the deal is not in its favor. The US does not have international credibility. The only and very credible thing the US has is its bombs.
A deal with the US can only last until the US thinks the deal is not in its favor. The US does not have international credibility. The only and very credible thing the US has is its bombs.
A deal with the US can only last until the US thinks the deal is not in its favor. The US does not have international credibility. The credible and very credible thing the US has is its bombs.
Exactly like I commented in another thread, China has no interest nor upside in meeting with Trump, or giving concrete concessions. Trump is trying to use the prospect of a Chinese offer as leverage going into the midterms to paint his trade war as "working", and evidence the Chinese offer as a "concession".
It’s Trump that’s under pressure right now as the Dems might take control of the House. The US stock market is on a downward slide, and profits for key manufacturing companies are shrinking.
Why would Xi come first with an offer when it is clear Trump is trying to use him as political leverage? The trade war will continue, and I can only hope Trump dares to tariff all $500B of Chinese imports, his impoverished base will find out what stagflation truly means.
Exactly like I commented in another thread, China has no interest nor upside in meeting with Trump, or giving concrete concessions. Trump is trying to use the prospect of a Chinese offer as leverage going into the midterms to paint his trade war as "working", and evidence the Chinese offer as a "concession".
It’s Trump that’s under pressure right now as the Dems might take control of the House. The US stock market is on a downward slide, and profits for key manufacturing companies are shrinking.
Why would Xi come first with an offer when it is clear Trump is trying to use him as political leverage? The trade war will continue, and I can only hope Trump dares to tariff all $500B of Chinese imports, his impoverished base will find out what stagflation truly means.