May 9, 2019
China’s top negotiator may have diminished role in trade talks ahead of dinner with US officials
- China’s top trade negotiator, Liu He, will meet with President Donald Trump’s trade team on Thursday without the title “special envoy” for President Xi Jinping, a role he has held in previous talks.
- The demotion suggests the vice premiere may have diminished authority to make concessions that could be key to striking a deal.
I'd take it a step further and say the fact Liu He wasn't allowed to bind Xi as his former title previously allowed means that the (non) result of the talks was preordained last week in Beijing and that Xi's hard line may win out over his top negotiator's more flexible approach. Meaning Mr. Liu could become dispensable.
That would have a negative effect on equities.
Lending a bit of credence to the idea the trade talks decision was made earlier, the Central Government had begun a national inventory of grain stocks, quality and amount, in March. This is only the third such inventory this century, following similar efforts in 2001 and 2009.
Here's one example from Fujian Province via Google Translate (no humans to help me at the moment):
Putian: From May 6th, the policy food stocks inventory was fully launched.
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SCMP Headlines, May 14
- US tech bellwethers were among the hardest-hit stocks, with Apple and Tesla both dropping more than 5 per cent
- Market sell-off resumed after China said it would impose 25 per cent duties on a portion of US$60 billion worth of US goods starting on June 1
Advanced
warships will boost PLA Navy’s operational capabilities but its focus
may soon shift to improving training and logistics.
The
US president also confirmed that he would be meeting his counterpart,
Xi Jinping, during the G20 meetings in Japan at the end of June.
US
Commerce Department says four companies attempted to procure goods that
would have supported Iran’s weapons of mass destruction and military
programmes.
Even
if he wanted to, the US president can no longer contain the anti-China
hostility he unleashed in his run for the Oval Office. America’s hard
line makes any trade deal unlikely.
US President’s latest flurry of tweets includes warning to Beijing not to retaliate after he raised tariffs on Chinese imports.
Editorial
in People’s Daily says Beijing wants to settle its differences with the
US, but warns it will not change its system and can weather a lengthy
stand-off.
Wei
Jianguo, former vice-minister at the Ministry of Commerce responsible
for foreign trade, said China has already prepared for a prolonged trade
war.
Ministry
of Finance says the move, with duties to rise to ‘25, 20 and 10 per
cent’, is a response to ‘unilateralism and trade protectionism’.
That's not even all of the front page.
Xi's in charge.
So the question that comes to mind is "How many DJIA points is Mr. Liu's presence worth?"
Rough estimate: 2000.
That's not even all of the front page.
Xi's in charge.
So the question that comes to mind is "How many DJIA points is Mr. Liu's presence worth?"
Rough estimate: 2000.
