FAST FIVE: Markets Confident Of Deadline Extension As Trump Meets Top Chinese Trade Official
Though there's plenty of evidence to suggest that deep divisions remain and that the Chinese are nowhere near relenting on the US's key demands when it comes to currency manipulation and stealing technology transfer , when Trump tells it, the talks are either going “very, very well,” or “moving in a positive direction” or on the verge of some unspecified breakthrough.
The meeting follows a promise made by Beijing to purchase another $30 billion of US soybeans, corn and wheat – a promise that, as Forbes' Ken Rapoza pointed out in a recent column – would be practically impossible to fulfill.
Either China wants to ram food down the throats of its citizens, has plans to build more silos to store grain (which is already rotting in Chinese silos), or will just stop buying soy and beef and chicken from Brazil, much to Brazil's dismay.
And though China has offered other concessions like opening up its market to foreign insurers, something that would progress only gradually, negotiators have resisted the US's demands for “structural reforms” to its economy and denied accusations that it forces foreign competitors to hand over their IP.
Meanwhile, the US's demands that Beijing keep its currency “stable” – something that Chinese policy makers are already struggling to achieve – has been met with a wary response from Beijing (and would be counterproductive to the US in the long run).