“I’ll Eat My Hat If This Means Anything Substantive”: Why The Trump-Xi Truce Achieves Little, by Tyler Durden

The pomp and circumstance signify little. From Tyler Durden at zerohedge.com:

The most important, and much-anticipated dinner date between Trump and Xi in years, which concluded amid loud applause and brief celebrations by both sides, ended in a three-month truce to the ongoing trade war between the two superpowers, with the US agreeing to postpone a planned tariff hike on January 1 and to keep the rate on existing tariffs at 10% for another 90 days in return for greater purchases of American goods.

While the arrangement provides breathing space to both leaders as they face slumping stock markets and economic warning signs, and will likely result in a brief jump in the market in the coming days, the two sides failed to make any tangible progress on the fundamental divide and core issues separating the world’s biggest economies.

“You blink first!”… “No, you blink first.”

As Bloomberg recaps this morning, “negotiations have long been stuck over U.S. demands for deep structural reforms such as stopping forced technology transfers, enforcing intellectual property rights and ending state subsidies for strategic industries – all of which China sees as an American strategy to thwart its rise as a global power.” It is on these most thorny of issues that there was no real progress during the Trump-Xi dinner.

Continue reading→

 

Advertisements

One response to ““I’ll Eat My Hat If This Means Anything Substantive”: Why The Trump-Xi Truce Achieves Little, by Tyler Durden

  1. China always use the tactics of “Stating one thing, doing another thing”. D. Trump should do exactly the same to them.

    I strongly believe in your prediction that there will be no real progress as China will never give any real concession in the trade war.

    The best is there is a stall in the trade war, giving China time to advance on other fronts and obtain more trade and technology transfer. The worst is China will flood all American friendly markets with its cheap goods.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.