Fading A China Trade Deal

Via Global Macro Monitor,

Trump is going to have to cave on some major issues as it appears China is gearing up to play hardball and is ready to rumble in the next round of negotiations.  The Ministry of Commerce announced this morning the “talks will be held in the spirit of equality and mutual respect, and that China’s core issues must be resolved.”

But even the doves in the Trump administration seem to be growing increasingly pessimistic and lowering expectations.

Kudlow: U.S. may never reach trade deal with China

“When you get down to the last 10 percent, seven-yard line, it’s tough,” he added, referring to the negotiations. – Larry Kudlow, Politico

China is sensing that patience is running thin in America over Trump’s trade war.

While rural Americans were some of Trump’s biggest supporters, they are losing patience with a year long trade war that the Trump administration has reached an impasse without closing a deal with China. – Global Times

China can play the long game and Xi is also probably studying U.S. political polls, smells blood, and sees a president growing desperate for a deal.  Moreover, the polls in the states that matter most for re-election continue to get worse for the President.

This story just broke tonight in the Washington Post,

The Trump administration is increasingly concerned about prospects for a trade deal with China, amid an unexpected reshuffling of the Chinese negotiating team and a lack of progress on core issues since the Group of 20 summit in Japan, according to U.S. officials and senior

Keep reading this article on Zero Hedge - Blog.

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