From the private meeting with Treas. Sec. Bessent
- China negotiations will be a ‘slog’
- Describes current bilateral trade situation as an embargo
- No one thinks the current status quo between China is sustainable. Therefore there will be de-escalation with China over the very near future.
- Goal is not to decouple US, China economies
- US rebalancing with China, but questions is whether Beijing is ready to do it.
- Rebalancing of the China economy towards consumption and US economy towards manufacturing in 2 to 3 years would be a huge win
This article was written by Greg Michalowski at www.forexlive.com.