The Chinese Delegation Just Said FU to Trump

[Zhong Lu + 845]

https://www.cnbc.com/2019/10/06/china-is-reportedly-reluctant-to-agree-to-a-broad-us-trade-deal-with-talks-set-to-restart.html

They didn't quite phrase it like that, so it didn't hit me until now.  But knowing Trump this ain't good for the markets.  Should be sleeping, but gonna put in an order for gold [when I can] and see where this carries.  

 

Here's the relevant quote:

Vice Premier Liu He, who will lead negotiations for China, told dignitaries that his offer to the U.S. will not include commitments on reforming Chinese industrial policy or government subsidies, according to to Bloomberg. These are among the Trump administration’s main demands in the trade talks.

 

Edited October 7, 2019 by Zhong Lu

[Douglas Buckland + 6,308]

I suppose that this is how the game is played at this level.

Should just put them all in a room and tell them all they get is water and pizza until they come to an agreement. They can’t leave until they do!

[Marcin + 519]

I do not know why this is suddenly a news. It is Chinese red line from the beginning to not agree on any matter China deems to be sovereign domestic matter. Every large/modern country has industrial policy (US, Germany, S Korea, Japan), now China also has such thing. The only difference is China's population is bigger than all OECD countries combined so it is a real threat.

Generally: Important thing that mass media do not convene to society is that any breach of China's red lines in matters of internal development policies could do much more harm to China than anything that Trump can use against China.

And Trump knows this and China knows this, but Trump needs narrative for 2020 election, he will slide on China threat narrative directly into Oval Office for second term.

 

[Douglas Buckland + 6,308]

You can have have a ‘domestic’ Red Line all you want, not an issue...UNLESS YOU WANT TO ACT ON THE GLOBAL STAGE!

At this point you either decide to play by the globally accepted rules, or you sit on the bench.

What scares China is that they’ve gotten away with being the ‘trade bully’ for decades...and along comes this orange buffoon, who nobody expected to get elected, and he has the stones to say ‘enough is enough’! There was nothing in the Chinese playbook to address this. 
 

Worse yet, other nations which had keep quiet and let the Chinese juggernaut roll over them are now riding the orange buffoons coattails after seeing that they don’t actually have to kowtow to China. This is worrying China.

Of course, if you are a recipient of the BRI largesse, and are willing to sell out your country for Chinese cash, you remain silent.

China is now reaping what they have sewn. 
 

 

[Guest]

orange buffoon

I'm still chuckling  🤣

No game plan

Edited October 23, 2019 by Guest

[Marcin + 519]

Douglas you are maybe a little bit naive and I am maybe a little bit cynical.

 

Countries have only interests.

Fortunately for Americans, politicians running the country are cynical hypocrites that serve interests of United States.

Fortunately for Chinese, politicians running the country are cynical hypocrites that serve interests of China.

Both do not give a f**k about other countries, people, white bears or blue sky.

 

Both China and US do dirty tricks on a daily basis, it is the job of  governments to serve interests of countries. Each country more in their respective areas of excellence that are changing over time.

[Zhong Lu + 845]

Small position in gold.  Small position.  

[Guest]

Haha I was long for short time after the open, glad I was out before drop an hour ago

[Guest]

https://www.zerohedge.com/geopolitical/beijing-about-make-epic-miscalculation-rabo

FU shmuck you ?

'' However, regrettably this again underlines that Beijing is about to make another epic miscalculation if so. As noted, Trump ALWAYS escalates when put under pressure, and has never shown anything so far but a tendency to raise tariffs when disappointed. Recall that there were reports his first instinct when China walked away from trade talks back in May was to double the 25% tariffs to 50%, before opting to move to 30% instead. If China thinks Trump is going to crumble now just because he faces possible impeachment, they are about to get a very nasty surprise – and hence so are markets. This morning China is still closed for the last day of Golden Week, but when it is back in force, expect yet more fireworks if those headlines are correct. Of course, China believes it has all the answers to the trade war: pigs the size of polar bears: Sino-Soviet gigantism as a cure-all once again.''

[Douglas Buckland + 6,308]

7 hours ago, DayTrader said:

Haha I was long for short time after the open, glad I was out before drop an hour ago

I went long on coffee and short on donuts....pretty good morning so far!

[Hotone + 412]

On 10/7/2019 at 9:10 PM, Douglas Buckland said:

You can have have a ‘domestic’ Red Line all you want, not an issue...UNLESS YOU WANT TO ACT ON THE GLOBAL STAGE!

At this point you either decide to play by the globally accepted rules, or you sit on the bench.

Industrial policy is practiced by most countries. Germany, for example, has Industry 4.0, India has Make in India, S Korea, Japan have their policies.  China's industrial policy is no different, and they are playing by globally accepted WTO rules. 

In this trade conflict, the US is breaking the rules and China had filed a case with the WTO.  The US has resorted to crippling the WTO by blocking appointment of judges to its appellate court. If that doesn't work, the US has threatened to pull out if the WTO.