Trump voices optimism over US-China trade talks

Saturday, 12 Oct, 2019

The White House angered Beijing on Monday when it put visa restrictions on senior Chinese officials and blacklisted 28 Chinese companies from doing business in the USA, pointing to China's persecution of its ethnic Uighur Muslim population as the reason.

Risk assets are jumping on the headline above but I think the algos are a bit too quick to jump the gun here.

The remarks added to an atmosphere that had grown warmer during the day after Trump announced he would grant an audience at the White House to top Chinese trade envoy Liu He.

Wall Street rose for the third straight session on Friday, as investors expected top-level trade talks between the United States and China to result in a partial trade deal and delay planned USA tariff increases. Treasury Secretary Steven Mnuchin said the talks were productive.

Myron Brilliant, the Chamber's head of global affairs, said that negotiators were "trying to find a path towards the bigger deal" with progress on market access and less controversial intellectual property and other issues.

A partial agreement, while not solving the scope of disputes between the two countries or addressing the thorny disagreements surrounding intellectual property, could help build confidence towards a larger deal.

Earlier in the week, the United States government blacklisted 28 Chinese entities it said were "implicated" in human rights abuses, and imposed additional visa restrictions for Chinese government officials.

U.S. President Donald Trump said "we had a very, very good negotiation with China", while a White House official said the talks had gone "probably better than expected".

I'm very happy right now. More duties on $160 billion of Chinese imports are due December 15. Despite what the news was saying, there is no inflation. They've devalued their currency and their pouring a lot of money into their system, he said.

This week marked the first high level talks between the two sides since President Trump met with the Chinese president at the 2019 G20 summit in June.

"Now they've lost 3.5 million jobs and their chain is breaking up".

"If we can make a deal, we're going to make a deal. He can say, look, I made progress on some real significant things but I'm still tougher than anyone else has ever been".

Sen. Maria Cantwell (D., Wash.) said it is already clear from the latest report on USA manufacturing that this approach to trade is hurting the country.

"You could call it worth or value of our country".

Oil-related stocks around Asia posted big gains after a reported explosion damaged an Iranian oil tanker in the Red Sea, stoking fears about increased tensions in the region and potential disruption to oil supply. "It's stronger", he said.

"China won't include forced IP transfers and other 21 century IP infractions and subsidized industries in the talks while the worst IP offenders operate as domestic companies in China outside the reach of tariffs", Swonk added. And if we can make a deal, we're going to make a deal. There's a really good chance.