Beijing is reportedly promising the moon to reach a China trade deal with President Trump. A new Bloomberg News report says China has offered to buy more than $1 trillion in additional imports over six years, shrinking its $323 billion trade surplus with the U.S. to zero by 2024. While investors are increasingly confident that a China trade deal will happen, the news of a Chinese buying spree added a little hot sauce to the Dow Jones and broader stock market rally on Friday.
After the report, the Dow Jones, S&P 500 index and Nasdaq composite were all up more than 1% on the stock market today. The Dow and S&P 500 moved above their 50-day moving averages on Thursday on China trade deal hopes.
Is China Trade Offer Realistic?
The news is pretty stunning, but may be too good to be realistic. Back in May, China was reportedly only offering to boost purchases of U.S. goods by about $70 billion over several years. That might have done little to curb the trade gap. The new offer envisions a dramatic shift in global trade. But Bloomberg reported that U.S. negotiators are doubtful it could happen and wary that China's commitments are too far into the future. The first year would see roughly an additional $45 billion in purchases by China.
It's not year clear how Beijing proposes to achieve the shift. Buying American agricultural products, natural gas, and perhaps oil are certainly part of the puzzle. Deere stock, which benefits when American farmers are thriving, surged higher on the news. Deere (DE) rose 3.2%. Dow Jones component Caterpillar (CAT), which gets a big slice of revenue from China, rose 2.2%.
The news is pretty stunning, but may be too good to be realistic. Back in May, China was reportedly only offering to boost purchases of U.S. goods by about $70 billion over several years. That might have done little to curb the trade gap. The new offer envisions a dramatic shift in global trade. But Bloomberg reported that U.S. negotiators are doubtful it could happen and wary that China's commitments are too far into the future. The first year would see roughly an additional $45 billion in purchases by China.
Looks like China has decided trade wars aren't in their best interest
Things aren't totally wrapped up yet:
They are showing a willingness. If that willingness is because of something you did, even though you could certainly say don't count your chickens before they hatch, you would definitely be taking credit for pushing them to show this willingness.i wouldn't be going around bragging victory on something that hasn't happened or is even close to happening
Looks like China has decided trade wars aren't in their best interest
Things aren't totally wrapped up yet:
Nobody wins a trade war. China knows it. Our president doesn't.
If the trade deficit is closer to a wash, we are winning.
Looks like China has decided trade wars aren't in their best interest
Things aren't totally wrapped up yet:
Nobody wins a trade war. China knows it. Our president doesn't.
Did you READ the quotes I provided, or even the entire link? Did either I or the article suggest it was time for a victory parade?Before ya get to excited see what the US wants from China. It is not just about purchases of equipment/NG and agri products.
https://www.scmp.com/news/china/mon...-us-wants-china-during-90-day-trade-war-truce
Did say this was end of our conflicts with China, did I? My link talks about some of the tough spots.This is all fine and dandy, but it won't make Trump give up on the other issues we have with China. China is making a big mistake if they think Trump will allow them to continue with their other tactics of tech theft, currency manipulation, etc.
LOL, Yeah, our president is horrible he only got China to agree to buy about a trillion dollars of our goods. What a loser. :roll:Nobody wins a trade war. China knows it. Our president doesn't.
LOL, Yeah, our president is horrible he only got China to agree to buy about a trillion dollars of our goods. What a loser. :roll:
It's up over 40% since Trump was elected. Nice thing about the drop you're trying to make into a big deal was that it created some good buys which helped. Got anything else?Cool story. How's your stock portfolio been since this time last year?
It's up over 40% since Trump was elected.
Nice thing about the drop you're trying to make into a big deal was that it created some good buys which helped. Got anything else?
Did you READ the quotes I provided, or even the entire link? Did either I or the article suggest it was time for a victory parade?
Seriously? I "made no points". Really? What's the topic of this thread? Point is that China is making BIG moves on trade.Thing is you made no points. Reasons I asked. Thought it was BN where rules are tighter.
Seriously? I "made no points". Really? What's the topic of this thread? Point is that China is making BIG moves on trade.
Forced technology transfer
IP protection
Cyber intrusions and cyber theft
Services and agriculture
It's up over 40% since Trump was elected. Nice thing about the drop you're trying to make into a big deal was that it created some good buys which helped. Got anything else?
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