Trade deal seems to be "fake"
- Thread starter pipeguy
- Start date
China needs a deal but they don’t want to appear weak in the face of the humiliation of Hong Kong elections and the light being shone on the treatment of Muslim Uighurs.
Interesting. Why not release the draft text?
Here's the translated article btw:
Thanks to the joint efforts of the Chinese and American economic and trade teams, the two sides have reached an agreement on the text of the first-phase economic and trade agreement between China and the United States on the basis of the principles of equality and mutual respect. The text of the agreement includes nine chapters: preamble, intellectual property, technology transfer, food and agricultural products, financial services, exchange rates and transparency, expanded trade, bilateral assessments and dispute settlement, and final clauses. At the same time, the two sides reached an agreement that the United States will fulfill its relevant commitments to phase out tariff increases on Chinese products in stages and realize the transition from increasing to decreasing tariffs.
China believes that China and the United States, as the world ’s largest economies, must deal with the economic and trade relations between the two countries based on the overall situation. The conclusion of economic and trade agreements is beneficial to the fundamental interests of the Chinese and American peoples and the people of the world. Have a positive effect. This agreement is generally in line with China's general direction of deepening reform and opening up, and its inherent needs to promote high-quality economic development. The implementation of the relevant content of the agreement will help strengthen intellectual property protection, improve the business environment, expand market access, and better safeguard the legal rights and interests of various enterprises, including foreign companies, in China. Legal rights in US economic and trade activities. With the expansion of China's domestic market, Chinese companies have increased their imports of high-quality, competitive products and services from various countries, including the United States, in accordance with WTO rules and the principles of marketization and commercialization. To meet the people's growing needs for a better life. This agreement is conducive to strengthening cooperation between China and the United States in the economic and trade field, effectively controlling and resolving differences in the economic and trade field, and promoting the stable development of Sino-US economic and trade relations. In the context of the current downward pressure on the global economy, this agreement is conducive to enhancing global market confidence, stabilizing market expectations, and creating a good environment for normal economic and trade and investment activities.
The two parties agreed that in the next step, both parties will complete the necessary procedures such as legal review and translation proofreading as soon as possible, and negotiate the specific arrangements for the formal signing of the agreement.
After the agreement is signed, it is hoped that the two parties can abide by the agreement and strive to implement the relevant contents of the first phase of the agreement, do more things that are conducive to the development of bilateral economic and trade relations and global economic and financial stability, and maintain world peace and prosperity.
(CCTV reporter Xiao Zhensheng)
Because the legal teams on both sides need to review and approve prior to signature.
Partial rollback on tariffs in exchange for IP protections and agricultural purchase “guarantees”. It’s a start and both sides can take something away from it.
doesn't matter... all is priced in... just look at the charts.
Waiting patiently on text of deal. Wouldn't want just another NAFTA+ pyrrhic victory with billions in loses to show for it.
I suppose Trump could cry wolf one more time instead of taking a win over the Dems on impeachment and get some good will from the GOP. It'd be dumb, but all bets are off.
I suppose Trump could cry wolf one more time instead of taking a win over the Dems on impeachment and get some good will from the GOP. It'd be dumb, but all bets are off.
This US/China deal thing affecting the 'markets' is more psychological rather than 'technical' or fundamental effects on the 'street' or 'market' by the news media.
ulitmately it's whether the FED or central bank is keeping rates or continue in the path of giving 'free money' and devaluing it's currency and nowhere for investors to park their money. investors have nothing to invest..there is lots of liquidity. meaning lots of cash earning nothing in T-bills and short term bonds.
The 'private' repo market or where bonds are traded between private individuals and banks etc doesn't need the Fed 'support' ...the private 'stock market' is on public welfare you know what I mean..
ulitmately it's whether the FED or central bank is keeping rates or continue in the path of giving 'free money' and devaluing it's currency and nowhere for investors to park their money. investors have nothing to invest..there is lots of liquidity. meaning lots of cash earning nothing in T-bills and short term bonds.
The 'private' repo market or where bonds are traded between private individuals and banks etc doesn't need the Fed 'support' ...the private 'stock market' is on public welfare you know what I mean..
The 'trade deal' has REAL economic implications in terms of jobs and real GDP growth.
Both countries will see a BIG decline in GDP if no trade deal. farmers in US lose sales and go bankrupt if they have loans, factories in China shut down and lay off millions of workers and move to Vietnam or Bangladesh or other countries etc. for even lower wages. as the effec
t on the markets it's mostly market psychology.. it's like a ponzi scheme phsychology or tulip mania in the 16th century.
Both countries will see a BIG decline in GDP if no trade deal. farmers in US lose sales and go bankrupt if they have loans, factories in China shut down and lay off millions of workers and move to Vietnam or Bangladesh or other countries etc. for even lower wages. as the effec
t on the markets it's mostly market psychology.. it's like a ponzi scheme phsychology or tulip mania in the 16th century.