From time to time I post comments here from a contact that has some very close ties with high ups in the CCP. For anyone who is interested, Here is something I read from him today. His comment is in response to a recent macrovoices interview regarding China, trade deal, etc. And an article speculating on Chinas purported lack of dollar reserves.
Listening now and almost fell off my seat laughing at the whole " Trump and Xi kiss and make up to get a trade deal" talk. It is such a western view and coming from someone living in Hong Kong, it is puzzling how he can miss the background for the current niceties...
1. 70th anniversary on Oct 1 is key to Xi. But dropping existing tariffs and removing some key elements from the talks are also import to the Chinese position. Trump may cave, it is always possible, but Xi can't (not won't, can't). A Xi back down now will spell the end for the CCP and expose all the mishandling of issues in the economy and ag sector.
2. I have always said there will be some element of trade, and the timing for the 'trade" concessions by China is amusing because based on USDA data I saw, a large harvest is underway with out any markets to take a large percentage of the crop output. So, if true, China won't be paying nosebleed levels for ag goods because the US needs a market. On the pork side, pay attention to the US export data (10,000 ton pork exports to China last month) not the Trump tweets. Most of these exports are from Smithfields (Chinese owned) and in carcase form not processed which means it is actually costing jobs in the sector in the US.
via Imgflip Meme Generator
