China Attempts to Defuse Trade War

President Xi Jinping pledges reform including greater access to China's manufacturing and financial sectors.

In stark contrast to Trump's bullying remarks, China’s Xi Promises to Ease Foreign Access.

In a speech that officials had billed as a major address, Mr. Xi said Tuesday that plans are under way to accelerate access to the insurance sector, expand the permitted business scope for foreign financial institutions and reduce tariffs on imported automobiles and ownership limits for foreign car companies.

Throughout his 40-minute address, Mr. Xi never mentioned the trade friction with the U.S. or President Donald Trump. His remarks seemed designed to offer some policy initiatives, if not concessions, while drawing a contrast with President Trump’s “America First” agenda and portraying China as a steady global partner committed to the international trade order.

“In a world aspiring for peace and development, the Cold War and zero-sum mentality look even more out of place.” Mr. Xi told the Boao Forum, a government-backed gathering of business and political leaders on the tropical island of Hainan.

“Putting oneself on a pedestal or trying to immunize oneself from adverse developments will get nowhere,” he said.

President Xi said China would increase imports, improve the protection of intellectual property and provide a more transparent, rule-based environment for foreign investment. He also pointed to Beijing’s announcement late last year that it would raise foreign-equity caps in the banking, securities and insurance industries, and promised those measures would be implemented.

“We have every intention to translate the measures into reality sooner rather than later, Mr. Xi said, though he didn’t provide a clearer timetable for those or the other measures announced.

The Financial Times does not think much of the speech.

Most of the measures he mentioned had been previously announced and the Chinese president offered no new details about when or how they would be implemented, increasing the chances that the world’s two largest economies could be embroiled in a trade war as soon as June.

Xi's speech may be meaningless chatter, but futures are up significantly once again.

If this rally attempt fails, a quick, deep plunge is likely.

Mike "Mish" Shedlock

Comments
No. 1-25
Wagner
Wagner

Let me find those words and put them back in your mouth so that you could at least try to remember.

  • Here is about Mish denouncing investing in US markets:

Now type in google "define: denounce". This is one of the definitions I got:

"denounce - inform against."

So what was the conclusion of your yesterday's post "Global Growth: Sputter, Stutter, Mutter". You used some cropped, unreliable "Citi Economic Surprise Index" chart to inform sarcastically that now is not the time to be in the US stock market. Again, you can play innocent with your "conclusions" of that and all other articles.

  • Here is about Mish agreeing that system is rigged:

"For those that say the system is rigged, I concur. In my assessment, central banks are largely responsible for a compression of “risk premia.”"

P.S. And censorship is so "unlibertarian". Just pay more attention what you post and you won't be called out by your readers to point out inaccuracies in your thinking. In fact, if you haven't noticed, then I didn't post anything under the "CPI Month-Over-Month -0.1 Percent, Year-Over-Year +2.4 Percent" article because you did not speculate in overconfident manner what will happen to the stock market.

Kinuachdrach
Kinuachdrach

Democrats are scum! They really are!! Before the election, it looked like Putin & Trump could do a deal -- they are both patriots, concerned with the best interests of their own countries. But the Democrats destroyed that happy possibility with their nonsense about Russian "interference" causing the well-deserved defeat of Crooked Hillary. A wonderful opportunity to get the US & Russia working together has been lost, perhaps forever, because of the glaring dishonesty & stupidity of Democrats. Mish is always on about cutting the US defense budget. This was the opportunity to achieve that! And the Democrats ruined it for you, Mish.

Mike Mish Shedlock
Mike Mish Shedlock

Editor

Word to the wise. Anyone putting words in my mouth that I never stated, may get 1 warning ban. Then a permanent one.

Mike Mish Shedlock
Mike Mish Shedlock

Editor

@Wagner "A libertarian denounces to invest in US markets, because US markets are rigged. Hey, but investing in rigged Russian markets is fine?"

Hey @wagner, I never "denounced" US stocks. I will not have my position distorted. You are banned until May 1.

Wagen
Wagen

A libertarian denounces to invest in US markets, because US markets are rigged. Hey, but investing in rigged Russian markets is fine?

Let me list the risks here:

  1. Significant portion of population is still acceptable to the idea of communism ( https://www.rt.com/news/415883-putin-communist-ideology-christianity/ ). If that is not risk enough, then
  2. Major companies are still majority state owned in Russia (Aeroflot, Gazprom, Rosneft ...). If that is not enough of risk, then
  3. Mish and especially Zerohedge is telling us that US has warmongers in the office and things may get ugly due to Syria. If things do get ugly, then care to guess what will happen with Russian based assets held by Westerners? And if even that is not risk enough, then
  4. Corruption in Eastern Europe, especially in Russia, Ukraine, Belarus is way worse than anywhere else in Western World. And if that is not enough, then
  5. Most Russian enterprises are dependent on commodity markets. If the deflation comes, then don't expect returns.

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