Skip to main content

Trump and Xi to meet at the G-20

AXIOS , Bill Bishop

Photo: Xinhua/Li Tao via Getty Images


Trump and Xi had a phone call Thursday and look to have confirmed a meeting at the end of the month.

The South China Morning Post says it will be a "meeting plus dinner," and Bloomberg says that Trump has asked his cabinet to draft a possible trade deal with China."Trump asked key cabinet secretaries to have their staff draw up a potential deal to signal a ceasefire in an escalating trade conflict, the people said, adding that multiple agencies are involved in the drafting of the plan. It was unclear if Trump was easing up on U.S. demands that China has resisted," Bloomberg reported.

By the numbers:

Markets and the RMB liked the news of talks, as the currency had its biggest two-day gain since 2007. Hong Kong surged more than 4% and Shanghai went up more than 2.5%.Meanwhilethe US trade deficit with China rose to a monthly record high in September:"The Commerce Department said on Friday the trade gap increased 1.3 percent to $54.0 billion, widening for a fourth straight month. Data for August was revised to show the trade deficit rising to $53.3 billion instead of the previously reported $53.2 billion."

Between the lines: It sounds like the two sides are still far apart on a deal.

If there is a positive outcome from the meeting, it is likely to be a framework deal that involves a tariff cease fire and a roadmap for talks. That seems to be what the Chinese side sees as the most realistic positive outcome.Even if we see a trade deal, expect it to be a short-term, superficial salve to the fundamentally deteriorating U.S.-China relationship, and that Xi et al will see it and leverage it as a delaying action while China ramps up its efforts to reduce reliance on the U.S. and build up its comprehensive national power to better compete with the U.S.

The big picture: The trade dispute is just one dimension of the fundamental resetting of the U.S.-China relationship, and even if there is a trade deal some time in the future, the other issues, including but not limited to Taiwan, South China Sea, and interference/influence have little prospect of resolution any time soon.

Go deeper: China's Xi promotes 'self-reliance' as next economic era:

“Trade frictions with the U.S., and particularly the near-collapse of ZTE, has reinforced Chinese leaders’ instinct for technological autarky,” said Yanmei Xie of Gavekal Dragonomics, an economic research firm.


Popular posts from this blog

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed.
Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area”
For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number”
Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell you …

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میںPlease help the deserving persons...Salary:Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows;Welder: Rs. 1,700 dailyHeavy Duty Driver: Rs. 1,700 dailyMason: Rs. 1,500 dailyHelper: Rs. 850 dailyElectrician: Rs. 1,700 dailySurveyor: Rs. 2,500 dailySecurity Guard: Rs. 1,600 dailyBulldozer operator: Rs. 2,200 dailyConcrete mixer machine operator: Rs. 2,000 dailyRoller operator: Rs. 2,000 dailySteel fixer: Rs. 2,200 dailyIron Shuttering fixer: Rs. 1,800 dailyAccount clerk: Rs. 2,200 dailyCarpenter: Rs. 1,700 dailyLight duty driver: Rs. 1,700 dailyLabour: Rs. 900 dailyPara Engine mechanic: Rs. 1,700 dailyPipe fitter: Rs. 1,700 dailyStorekeeper: Rs. 1,700 dailyOffice boy: Rs. 1,200 dailyExcavator operator: Rs. 2,200 dailyShovel operator: Rs. 2,200 dailyComputer operator: Rs. 2,200 dailySecurity Supervisor: Rs. 2,200 dailyCook for Chinese food: Rs. 2,000 dailyCook…

The Rise of China-Europe Railways

The Rise of China-Europe RailwaysMarch 6, 2018The Dawn of a New Commercial Era?For over two millennia, technology and politics have shaped trade across the Eurasian supercontinent. The compass and domesticated camels helped the “silk routes” emerge between 200 and 400 CE, and peaceful interactions between the Han and Hellenic empires allowed overland trade to flourish. A major shift occurred in the late fifteenth century, when the invention of large ocean-going vessels and new navigation methods made maritime trade more competitive. Mercantilism and competition among Europe’s colonial powers helped pull commerce to the coastlines. Since then, commerce between Asia and Europe has traveled primarily by sea.1Against this historical backdrop, new railway services between China and Europe have emerged rapidly. Just 10 years ago, regular direct freight services from China to Europe did not exist.2 Today, they connect roughly 35 Chinese…