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Please take into account China's signals that it is ready to resume trade negotiations with the United States.
A government policy document on trade with the United States, released Sunday, accused Washington of ending negotiations, which broke down last month. The Trump administration's "America First" program and the use of tariffs are hurting the global economy and China would not back down against a trade war if necessary.
Throughout the document and at a briefing, the government suggested a willingness to resume negotiations. "What really matters is how to build mutual trust, promote cooperation and manage differences," the paper said. Vice Secretary of Commerce Wang Shouwen told reporters:We are willing to take a cooperative approach to finding a solution."
The tone, if not the substance, was far more measured than the abrupt, sometimes nationalistic rhetoric adopted by the state media and some officials over the past three weeks. Chinese trade experts said it was important to point out that the talks could resume, although the burden remains on the charge. is in the United States
China "expresses his wish to work together"Said Zhang Yansheng, a researcher in the state-supported think tank, the China Center for International Economic Exchanges.
Three conditions
- US to remove "all additional tariffs" on Chinese exports
- Chinese purchases of US products to reduce the US trade deficit "should be realistic"
- The text of a final agreement should be "balanced".
That's all?
Probably not. There is still a major problem with Huawei.
"Both parties must make concessions. Concessions can not all be on one side, Said Mr. Wang, one of the Chinese negotiators with the United States
Nothing to agree until everything is agreed
Wang reiterated an argument made by the Chinese authorities that Beijing did not back down in the negotiations as no agreement was reached. "At the bargaining table, everything is under discussion. Without agreement, there can be no so-called "backtracking," Wang said. He then switched to English:Nothing is agreed until everything is agreed."
Remember where we last heard this?
This is a line that Michel Barnier, the chief EU negotiator constantly repeats during the Brexit negotiations with the UK.
Watch the reactions
Futures are closed. It will not mean much if they open loudly and close in this way. That would be the wait on the fluff news as we have seen many times about an agreement that was supposedly "close".
It would be more telling to think that futures markets open lower and close in this way or open higher and lower.
We do not know how Trump will react. He also needs an agreement that China. And if he agrees to remove all tariffs and opt for a realistic and balanced deal, why did not we reach an agreement three weeks ago?
Meanwhile, the two sides have increased their tariffs and China has threatened to cut the rare earth reserves.
Party of victory?
Will it be a victory just to get back to where we were?
If this is the case, Trump will also have to backtrack, not just in China.
Mike "Mish" Shedlock
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