China trade big deal? We’ll see

Caixin:

President Xi Jinping pledged Thursday to import more U.S. agricultural produce and energy products and to deepen trade cooperation during a meeting in Beijing with visiting U.S. President Donald Trump. Both presidents attended a dialogue with business leaders from both countries in Beijing’s Great Hall of the People, where they were present for the signing of trade deals worth $253.5 billion, a record figure in the trade history of the two countries, the state-run China News Service reported, citing Chinese Commerce Minister Zhong Shan. Xi told Trump that his administration would continue encouraging Chinese companies to invest in the U.S., according to the official Xinhua News Agency. “We’re also hoping that the American side will export more technologies for civilian applications to China,” he said. Xi said that the Chinese economy will become increasingly open and transparent to foreign companies, including U.S. firms. He also encouraged U.S. companies to participate in his “Belt and Road” infrastructure-led initiative. The two countries will maintain steady communication on issues ranging from their respective structural reforms to management of the global economy, according to a statement issued by China’s Ministry of Foreign Affairs. Xi emphasized the importance of Sino-U.S. relations at his meeting with Trump, saying cooperation between the two countries is “the only right choice,” according to Xinhua.

Bloomberg says lose-lose. We don’t think so. There are a billion bumps in the road in China vs USA, but Xi cannot let growth or prosperity slow down, as the decline of farming and the increase of manufacturing and services happen. Nor can the US penalize China imports to a great extent. So: so far, so good.

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