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China is in Washington
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boilers01
Posted 1/31/2019 03:42 (#7286551 - in reply to #7286408)
Subject: RE:That might explain why....


farmer4321 - 1/30/2019 22:44

"China would follow through with promised purchases of American goods and services"
That might explain why China has yet to "follow thru with promised purchases". They are saving it for a negotiation point.
Likewise, "Trump administration officials have signaled that the negotiations are narrowing around a smaller initial deal that would stave off additional tariffs, What this suggests is that the Chinese are being really tough about the business practices and intellectual property issues. This also suggests that the Chinese are willing to sacrifice the 10% tariff on the first $250 billion as long as they don't get hit with 25% tariff on the whole $500 billion. This makes sense, they know that Americans will tolerate the extra 10% on industrial goods because they won't even see it whereas they would see 25% on the consumer goods.
Furthermore, another source indicated that the Chinese would promise to buy $1 trillion in US products over the next six years or $167 billion per year but that is only $17 billion more than they were already buying from us. So, in other words, peanuts.

As far as "pulling the trigger on ag products in a big way", are you referring to their previous levels of purchases or the current levels of purchases? Because "pulling the trigger" on the previous levels might be different than "pulling the trigger" on the current levels.





Go back to China and take your panda with you!
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