China Weekly Letter: US-China Rivalry Here To Stay Despite Possible Ceasefire

Published 11/16/2018, 11:26 PM

Lots of speculation about the Xi-Trump meeting

Economic data points to more weakness short term

Trade deal or not 6 rivalry here to stay

Continued speculation about the Xi-Trump meeting

A lot of stories about the upcoming Xi-Trump meeting have surfaced this week. According to Trump's economic adviser Larry Kudlow there are now talks on 'all levels'. Yesterday, Trump's Commerce Secretary Wilbur Ross said that Xi and Trump can only be expected to get a framework deal in place , but that it would take a long time to negotiate the whole list of 132 US demands, see Bloomberg . Ross also stated, that the US was still planning to raise the tariff rate from 10% to 25% on USD200bn of imports on 1 January. According to Reuters , China has delivered a written response to US demands that could form the basis for the negotiations. Two of Trump's trade advisors, the ultra-hawk Peter Navarro and Larry Kudlow, clashed openly as Kudlow criticized recent comments by Navarro and said the Trump administration has deliberately curtailed Navarro's public role, see CNBC and Politico .

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