China Takes A Comprehensive Trade Deal Off The Table, And That Is Disastrous News For The Economy

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The Chinese never intended to make a deal, and now they are publicly admitting it.  For months, I have been warning my watchers that a comprehensive trade deal with China will not happen before the 2020 presidential election, and the reason why this is the case is actually very simple.  The Chinese have concluded that President Trump will never give them the kind of deal that they are looking for, and so their entire goal has been to run out the clock on the Trump administration so that they can finally get to a Democrat that will be much more “reasonable” to deal with.  Of course if Elizabeth Warren or Bernie Sanders wins the election, they won’t be very “reasonable” either, and so the best case scenario for the Chinese is for either Joe Biden or Hillary Clinton to emerge victorious in November 2020.  In any event, the Chinese are now being very clear about the fact that they are never, ever going to agree to Trump’s core demands. In essence, the Chinese have completely taken a comprehensive trade deal off the table, and they probably believe that Trump’s looming impeachment may make him more agreeable to a more limited deal that would be more favorable to the Chinese.

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