CFR's Brad Sester: The phase-one of US-China deal has nothing for US manufacturing
|A potential phase-one trade agreement between the US and China will have nothing for the US manufacturing sector, Brad Sester, American economist and former staff economist at the United States Department of the Treasury and senior fellow for international economics at the Council on Foreign Relations tweeted during the Asian trading hours on Tuesday.
Key quotes
China has already resumed its purchases of US ag. The Sept trade data (out tomorrow) will likely make this even clearer. It needs the pork. And I suspect it needs some US beans too (Brazil cannot meet 2ys demand).
The "bigger" the phase 1 deal, the lower the odds there will be a phase 2. China has always been willing to raise its purchases of U.S. ag (and allow more U.S. financial service firms to take majority stakes in their JVs). It doesn't obviously have more large gives
The deal that is shaping up (more Chinese ag purchases, perhaps some structural liberalization for meat, more opportunities for U.S. financial services firms to invest in China, Chinese promises of stronger IP protection) has basically nothing for U.S. based manufacturing ...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.