Art Of The Deal: China Willing To Buy The Same Amount Of US Farm Goods They Bought In 2017. Maybe.
It's trade rumor time!
China plans to buy "at least" $20 billion in US farm goods in year one of a prospective trade "deal" with the US, assuming, of course, that the Trump administration manages to get a partial agreement with Beijing signed.
Since Donald Trump unveiled "Phase One" of what he swears on his kids (the ones whose names he can remember, anyway) will eventually be a sweeping deal with Xi Jinping, market participants have voiced more than a little skepticism.
As far as anyone can
What will China want in return for $20BN ag buys over 12 months? No tariff increases (including Oct and Dec)? drop or defer sanctions vs Huawei and other Chinese companies? Veto Hong Kong bill?
After seeing the US get rolled and run off by Turkey, China must be licking its lips. In their shoes, you’d be thinking “return to the previous status quo is not good enough, let’s make it better (for us) than it was before”.
Enough already! I am getting so tired of winning.
Does Trump have any cards at all? Surely the Chinese can see that he desperately needs a deal…….any deal.
Maybe he will to throw-in some (or all) of the “Trump”-branded properties?
Afterall, once Trump is fully outed for what he really is, what value will they have?
At the rates (even heavily discounted ones) he charges (actually, at any price at all) ,who will want to say that’s where they are staying. Most certainly, the vast majority of what is left of his “base” won’t be able to afford them…..
In comparing purchase from prior years, let’s keep in mind that their economy is growing at a rate of about 6% per year.