Trump claims China is desperate and is going to blink, while his polling numbers collapse in the farm-intense mid-west. The U.S. economy is growing at 3% while China’s is growing at 6.5% even while it’s slowing down.
By James DiGeorgia
The Wall Street Journal reported yesterday that Treasury Secretary Steven Mnuchin has officially broken the silence and requested a new round of trade talks with Chinese officials this September.
Trump, eager to make it look like he’s winning despite the fact that his poll numbers in farm states like Wisconsin, Iowa, Ohio, Michigan, and Pennsylvania are nose-diving, is making the case that he’s giving Beijing one last chance to avert new and additional tariffs on $200 billion in Chinese exports.
Showing a shocking lack of understanding of Chinese culture and politics, some Trump administration officials think they have China over a barrel according to the Wall Street Journal. Trump actually tweeted on Thursday…
"The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, and they are under pressure to make a deal with us. Our markets are surging, theirs are collapsing."
It’s as if he is unaware that any Chinese capitulation at this point would cause President Xi to lose face, and he may, in fact, be strengthened politically in China by telling Trump to go jump in his Washington Swamp.
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Also, the Wall Street Journal is reporting Chinese officials saying…
"… they have grown wary of the Trump administration's unpredictable decision-making process and may be hesitant to accept without a clear sign U.S. negotiators have authority to speak for the president."
The fact is the Chinese no longer trust the steady rise in both political pressure and discontent with President Trump among key supporters in farm and business groups as the mid-term elections approach. Meanwhile, those with the willingness to research Chinese history, culture, and politics like the Washington Post is reporting citing analysts…
"The president's expectation that financial hardship will prompt Chinese President Xi Jinping to cave in a fresh round of diplomatic talks is misplaced,"
“Chinese markets have fallen significantly this year while U.S. markets are rising, but unlike in the United States, the ups and downs of the Chinese stock market affect relatively few people, meaning sell-offs are unlikely to translate into pressure on Chinese leaders … China's slowing economy — its economy is growing at about 6.5 percent — is due to a lot of factors that have nothing to do with the U.S. trade war.
Jeff Moon, a former U.S. trade negotiator, tells the Washington Post…
"There's a lot of overly wishful thinking on the American side…Every economy has problems. We have trillion-dollar deficits. That doesn't mean either economy is in fundamental danger. Trump’s assessment of the current state of the Chinese position in this trade war is a massive miscalculation."