US-China Trade Talks Progressing, President Trump Optimistic

US-China Trade Talks Progressing, President Trump Optimistic

President Trump is expressing optimism about trade negotiations with China as US officials are expected in Beijing for talks aimed at easing a trade dispute.

President Trump spoke recently to Chinese President Xi Jinping Sunday, saying: “I really believe they want to make a deal. The tariffs have absolutely hurt China very badly.”

After several back and forth tariff increases, the 2 world leaders agreed on 1 December to postpone further hikes. American trade officials are due in Beijing Monday.

China is facing pressure to reach a settlement with the US.

Chinese economic growth fell to 6.5% in the Quarter ending in September.

China will stimulate its economy by cutting interest rates, further slashing banks’ RRR (reserve requirements) and asking state-controlled banks to lend more.

We believe that trade talks will result in a truce, if not a solution. A deal is certainly possible if the optics look good enough for President Trump’s 2020 Presidential campaign.

There are non-sensitive areas in which China can yield: forced technology transfers, food imports and foreign companies.

This will be a difficult year for the Chinese economy, but there is 1 positive: the plunge in Crude Oil prices will offset some of the headwinds. And China will need all the fair economic weather it can get.

Q-3 US growth was a strong 3.4% and unemployment is at a 50 year low.

America First!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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