Global stocks are moving higher Monday morning suggesting fears of a trade war are fading modestly following several encouraging developments over the weekend… however, the dollar index is extending losses, raising doubts that Mnuchin’s hoped-for compromise can be realized…
Chinese Premier Li Keqiang told foreign guests at the China Development Forum that there would be “no winner” in a trade war between the world’s two largest economies.
Regarding existing trade imbalance, China and the U.S. should seek balance by growing trade volume:
“Closing the door on others also blocks one’s own path,”Li was cited as claiming that “Made in China 2025” is promoted in an open environment.
Li promised that China will open up further, learn advanced technology and management experience from foreign countries, and strengthen cooperation in technological services, and perhaps most importantly for Trump, China will strengthen intellectual property protection and will not force foreign companies to transfer technology.
So – in summary – China says “sorry… we’ll fix it… we promise” – sounds like Zuck?
Here’s a summary of the rest of this weekend’s trade news, courtesy of Ransquawk.
Over the weekend, US Trump administration reportedly sent letter from US Treasury Secretary Mnuchin and Trade Representative Lighthizer to China seeking reduction of China tariffs on US autos, more access to China’s financial sector & more purchases of US semiconductors, while there were separate reports that US & China are said to be discussing access to Chinese markets. (WSJ)
China Ambassador to US stated China is looking into all options in response to US tariffs including lowering Treasury purchases, while the Ambassador reiterated China doesn’t want a trade war but is ready to respond if situation escalates. In addition, there were separate comments from former Vice Commerce Minister Wei that China may look at adding tariffs on airplanes and computer chips from US.
(China Daily)
In recent reports, China is to finalize rules on greater foreign ownership of securities firms by May as part of efforts in the trade negotiations with US and has offered to purchase more semiconductors from the US, diverting purchases from South Korea. (FT) South Korea Trade Ministry said agreed in principle with US on a revised FTA and that US agreed to exempt South Korea from steel tariffs.
Finally, we note that Trade War architect Peter Navarro is being interviewed on Bloomberg Radio and noted that “we are free-traders,” adding that the global system needs fixing.
Navarro also pointed out that Trump wants a $100 billion cut in the 2018 US-China trade gap – that’s over 25%!
via RSS https://ift.tt/2pF1BPj Tyler Durden