Both China's Xi and Trump signal trade deal agreement is near
If you think the economy is doing well now, and the stock market is in a growth mode, just wait until the worries over a trade war with China are resolved.
President Trump is getting close to demonstrating his superior wisdom to that of the Beltway Globalist Uniparty, which was perfectly content to allow China to steal our intellectual property; keep our exports out; and use a below-market value for their currency, the yuan, to build the largest trade surplus with us in the history of commerce.
It was an unquestioned assumption that China would play hardball and make any confrontation over the unfairness of its approach to trade a losing proposition for the U.S. In practice, this assumption was pushed by the large multinational corporations that delighted in transferring manufacturing operations to the Middle Kingdom and reaping outsize profits from the low-wage, hardworking labor force available there. Politically influential American business sectors like entertainment and airliner manufacturing were able to earn lots of money on the domestic Chinese market, and these sectors did not want confrontation.
Starting early in his campaign, Trump signaled that he wanted this détente that amounted to gradual liquidation of our manufacturing sector to end and be replaced by a deal that applied the same standards to both sides. I am convinced that this heresy is one of the principal reasons why the political establishment of both parties reacted with horror to him.
But Trump, the negotiator who is not afraid to be called a bully and worse, saw that China's trade surplus made it far more vulnerable to a trade war than was the United States. His imposition of tariffs already has damaged China's economy, while our own keeps surging along, with 3.2% growth the last quarter. This is why President Xi Jinping yesterday clearly signaled that China is ready to cut a new trade deal along terms acceptable to Trump. Via Bloomberg:
Chinese President Xi Jinping addressed some 40 world leaders at the Belt and Road forum in Beijing, but his speech may have been aimed at a head of state not in the audience: U.S. President Donald Trump.
Xi spent a large portion of his speech Friday addressing Chinese domestic reforms, pledging to address state subsidies, protect intellectual property rights, allow foreign investment in more sectors and avoid competitive devaluation of the yuan. All four are issues the U.S. is addressing in trade talks with Beijing.
"We will establish a binding enforcement system for international agreements," Xi said, adding that China will standardize all levels of government in terms of issuing administrative licenses and market regulation, and also "eliminate improper rules, subsidies and practices that impede fair competition and distort the market."
Game. Set. Match. Trump.
Yes, still to be finalized, and we can't count the chickens until the eggs hatch. BUT it is clear that Xi has already signaled that those chicks are on the way, because a state visit to the White House already is being planned, as Trump revealed to a group of schoolchildren. Michelle Moons writes in Breitbart:
President Donald Trump said Chinese President Xi Jinping would be visiting Washington, D.C., "soon" as he spoke to children at the White House.
Trump made the comment while speaking with children of White House staff and press for Take Your Son or Daughter to Work Day. "We have prime minister Abe of Japan coming tomorrow for a very important meeting. We will soon be having President Xi from China coming," he told the kids.
This planning would not be happening unless an accord was already agreed upon.
Trump and Xi (cropped from U.S. Embassy picture).
Trump has shown up the weaklings and provided real leadership on behalf of Americans.