By Jon Dougherty
(NationalSentinel) President Donald Trump’s economic policies, coupled with the Republican-led tax reform plan in 2017, have added trillions of dollars in wealth to Wall Street, padding the retirement accounts of tens of millions of Americans.
On Tuesday, the president managed to boost the stock market just by tweeting a message of encouragement: He says he and Chinese President Xi Jinping will have an “extended” meeting at the upcoming G-20 meeting in Japan next week.
“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to ourÂ meeting,” he wrote.
As of midday, the Dow Jones Industrial Average had surged more than 400 points, though it has fallen off a bit since then.
Larry Kudlow, director of the White House National Economic Council, toldÂ Fox NewsÂ that while he couldn’t discuss all of the particulars, “the decision that [the two leaders] will, in fact, meet in Osaka, Japan, at the sidelines of the G-20 conference” has been made.
He also concerned that it would be an “extended” meeting.
“The United States wants to continue the conversations about structural changes regarding intellectual property theft and forced technology transfers and market openings and tariffs,” Kudlow continued.
“We’re looking for an enforceable agreement as we always have, that’s absolutely vital,” he said. “So all of those general topics will be on the table.”
Kudlow’s comments and POTUS’ announcement that he’s going to meet with Xi come amid claims that China is experiencing dramatic internal and economic pressures, according to Beijing expert Gordon Chang.
In a separate interview withÂ Fox Business Network, Chang said that protests in Hong Kong over opposition to an extradition bill, along with continued pressures from the tariff/trade war with the U.S., have put an additional impetus on Xi to negotiate.
Chang also noted that Xi’s planned visit to North Korea this week — his first — is part of China’s attempt use nuclear cooperation as a hedge to win “trade concessions” from the United States.
“This is going to be the meeting of all meetings,” Chang said.
As for whether China is “ready” for additional tariffs on more goods, Chang said, “I don’t think so.”
“I think they believe they can manipulate the American political system to put enough pressure on President Trump,” he said.
“But China right now has an economy which is crumbling [and] could have even been contracting last month,” Chang noted. “We saw that with bellwether car sales down 16.4 percent, the eleventh straight month of decline, the worst monthly decline ever.”
Meanwhile, he said, “imports were down 8.5 percent year on year, a real indication of declining domestic demand.
“This is an economy that is in severe trouble. They need the U.S. market desperately right now,” Chang concluded.
Kudlow noted that the market understands there is no hard-and-fast agreement yet between the U.S. and China, but the fact that both economic superpowers are talking is a positive indication.
The president’s chief economist also noted that passage of “NAFTA 2.0” — the USMCA U.S./Mexico/Canada trade deal negotiated by the administration last year would had “a half-a-percent per year” to U.S. GDP, or trillions more dollars.
- Follow Jon Dougherty on Twitter at @JonDougherty10
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