Tuesday , November 24 2020

The White House is going downhill with China in trade, sinking markets



After the White House, crashed stocks denied the report that President Trump was helping the aiders to come up with an agreement to resolve the growing Chinese trade conflict.

The industry average of Dow Jones jumped nearly 200 points early in trade before handing over these profits and dropping another 300 points.

Investors have previously been quoted by Bloomberg News as Trump assisting his assistants to negotiate with him to meet with Chinese President Xi Jinping at the G20 Summit in Buenos Aires today. This report came after Trump after Trump said a morning beep that with Xi was "a long and very good conversation" that "puts a heavy emphasis on trade".

Larry Kudlow, Director of the National Economic Council, was disappointed with investors, denying Trump directed all new action. "There is no big movement against China," Kudlow told CNBC. "… We are not at one of the culmination of the business."

Michael Pillsbury, Chinese expert at the Hudson Institute and ad hoc Adviser to the White House, also said that a debate on a potential issue was over-emphasized. "His friends in the White House say that President Trump still wants the Chinese to make the initial bid, and to have a better and more honest," Pillsbury wrote in an e-mail.

The two leaders also encounter a long list of difficult issues when they meet. As Trump introduced tariffs for Chinese imports a few months ago, the United States extended its Chinese behavioral complaints to include military accumulation and the treatment of religious minorities in Xinjiang.

Fresh trade data, however, shows Friday that Trump has not made any progress in its campaign to narrow the US trade deficit. By September, the United States imported $ 445.2 billion more goods and services than sold abroad by $ 404.4 billion in the same period in 2017.

When importers were suddenly hit by the rise in US tariffs for Chinese goods on January 1, the month-on-month shipment of goods in China rose to $ 37.4 billion in September compared to $ 3 billion a year ago. In the first nine months of the year, the United States achieved a $ 301.4 billion deficit with China – 10 percent more than the same period last year.

On Thursday, the Ministry of Justice has recently spied on Chinese companies and individuals.

With the unusual accusation of accusations, Beijing is a rigorous warning that it is about coping with the technical secrets of the United States, which illustrates the violation of Washington's civic behavior beyond commercial inequality.

In lengthy reading by China's state media, Xi said he was "very happy" to speak with Trump and "attached great importance to good relations with the president."

But China's assessment has also revealed the disappointment with the renewed and repeated nature of the talks between Washington and Beijing. "China sees the United States government under Trump is controversial and unreliable," wrote analysts at Beijing Financial Advisor Trivium.

Trump's Thursday and subsequent Bloomberg News report quickly faded.

Many analysts were skeptical that all significant changes had taken place between the United States and China. For example, there was no indication that Xi was willing to give up the state-aid program "Made-in-China 2025" aimed at ensuring China's dominance in advanced technology industries.

"I believe that the chances of near-revenue are low but not negligible, given that the president has allegedly authorized some in the administration to develop an outline of an agreement and want to win the Chinese victory, everything is possible," said Scott Kennedy, Chinese Expert Strategic and International Studies Center. "Hawks in public administration will argue for a deal, and the Chinese will probably remain true and will not get the necessary concessions."

The sudden warming of Trump and the closeness of Tuesday's congressional elections also made a comment. In recent days, when Republicans are opposed to the possibility of losing majority in the House of Representatives, Trump has shown the excitement of high-profile initiatives – including promised middle-class tax cuts and military installations along the southern border.

"We have good reason to be skeptical at the moment of kumbaya," said Chris Craiger, analyst at Cowen Washington Research Group.

China will have future import fair next week that Xi will show Beijing's commitment to "increase import and expand openness," according to Chinese reading.

Xi is expected to have a great speech at the opening ceremony of the convention on Monday, where he could potentially discuss the vision of future market access reforms or the role of government in leading industries – areas where Washington and US companies demand more Chinese concessions.

In months of negotiations with intermediaries and lower officials, US and Chinese officials hope that the meeting of the two presidencies will be a breakthrough on the Buenos Aires summit.

The month-old spat considered world markets in the politically decisive stages of both leaders: Trump faces a key mid-term test on Tuesday, while Xi is focusing on the economic helmet and rising middle class concerns.

Larry Kudlow, Trump's most important economic advisor earlier in a Washington Post Live event, said he was not sure that trade would be discussed when the two presidents met in Argentina but confirmed that the two men sat down.

"The agenda was discussed and worked in both camps," Kudlow said. "I think it involves trade, but I'm not 100 percent sure."

It is unclear how the progress of high-level discussions will have an impact on US action to face other aspects of trade relations with China. Federal prosecutors have been charged with Chinese companies and individuals in three cases over the last two months and promised more than this week.

After hours, Trump's son Jeff Sessions, a prosecutor, told the court that the indictment was part of a new initiative that confirmed the "strategic priority of the Ministry of Justice in the fight against China's national security threats".

The department has filed charges on Thursday against China's Fujian Jinhua Integrated Circuit (Chinese state-owned semiconductor company) with the aim of stealing the secrets from Idaho chipmaker Micron.

And at the beginning of the week, prosecutors filed charges against Chinese intelligence officers who alleged that they were conspired to engage engine designs on behalf of the Chinese jetliner industry.

Shih reported on Hong Kong and reported Lynch Washington


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