(National Sentinel) Winning: As news spread late last week that the Trump administration and Mexican negotiators were a hair’s breadth away from renegotiating the North American Free Trade Agreement, a separate report claims that POTUS Trump and Chinese President Xi Jinping may meet to hammer out disagreements over trade face-to-face.
Breitbart News, citing the Wall Street Journal, reported Friday that a Chinese trade delegation is heading to the U.S. in order to lay out the “road map” for an eventual Trump-Xi meet-and-greet to get a deal done.
The mid-level Chinese delegation is expected to arrive in the U.S. next week.
The WSJ reported:
Chinese and U.S. negotiators are mapping out talks to try to end their trade standoff ahead of planned meetings between President Trump and Chinese leader Xi Jinping at multilateral summits in November, said officials in both nations.
The talks are aimed at deep-sixing additional tariffs which have already targeted billions of dollars’ worth of goods in both countries, and could eventually involve hundreds of billions more.
But why would the Chinese want to negotiate if, as the #NeverTrump faction claims, Beijing is supposedly in a much better position to ride out a trade war than the U.S.?
Maybe it’s because the #NeverTrump narrative is wrong.
Larry Kudlow, POTUS Trump’s chief economic adviser, says the Chinese economy is in far worse shape than many people know or understand. He says that not only is the economy “terrible,” but investment there is “collapsing,” CNBC reported.
In a Cabinet meeting, Kudlow told the president he’s not “a China expert” but that he’s getting up to speed on the country quickly.
“I’m not a China expert, although I’m boning up as fast as I can, I would just say right now their economy looks terrible,” he said, adding that “retail sales, business investment is collapsing.” “There may be some manipulation” in the currency and “investors are moving out of China because they don’t like the economy,” he added.
And while China’s economy does continue to grow, that growth is slowing — at the same that U.S. economic growth is rising, thanks to pro-business and pro-growth policies out of the Trump administration and GOP-controlled Congress.
CNBC noted further:
Growth is slowing, and the latest economic reports did disappoint analyst expectations. Worries about high debt levels persist. The Chinese yuan has fallen to its lowest level in more than a year against the U.S. dollar.
The Chinese stock market also paints a depressing picture for investors. The Shanghai exchange, which is known to be more volatile and less efficient than U.S. markets, is down 25 percent from a high it hit in late January.
U.S. markets, meanwhile, are up and rising.
Barron’s magazine also poured cold water on the prospect that China’s in a great position in terms of riding out or escalating tariffs:
Some threats to China’s long-term growth prospects have no easy fixes. China’s longtime one-child policy has birthed a demographic time bomb—i.e., an aging population and shrinking workforce that will hinder economic growth. And China is one of the countries most at risk of a banking crisis, according to the Bank of International Settlements, because of its massive debt load.
China’s rising debt and other economic problems also come at a time when the Communist Party-led government is cracking down even more on basic human rights such as dissent. Earlier this year reports noted that the government bolstered its “public safety expenditures” this year by 5.5 percent, or about $30 billion.
Public safety expenditures is a euphemism for “stability maintenance,” The Epoch Times reports, adding that it’s
the oft-used Chinese term for the authorities’ efforts to crack down on dissent, from arresting petitioners who travel to Beijing to address their grievances, to detaining human rights activists and censoring opinions that criticize the Party.
President Xi and his ruling Chi-Com party understand that increased economic instability or even a partial collapse of the economy will send masses into the streets in waves of dissent the government can’t control.
Better, then, to get Beijing’s trade issues with the U.S. settled now while the timing is better.
As for Trump, it’s always better to put pressure on an economy that’s growing rather than add stressors to one that isn’t — as all billionaire businessmen know.