China won’t sign a trade deal while there’s still chaos in DC

By: John C.

Stocks went down sharply Tuesday because President Donald Trump was pessimistic about the trade talks with China. Then, stocks went up Wednesday after Bloomberg News wrote nice things about the talks.

Bloomberg News quoted “people familiar with the talks” and said, “The people, who asked not to be identified, said the US President Donald Trump’s comments downplaying the urgency of a deal shouldn’t be understood to mean the talks were stalling, as he was speaking off the cuff.”

That part was sourced to “one person familiar with Beijing’s thinking.”

Like who? Some university professor? The guy who sells dumplings on a Beijing street corner? One writer’s grandma? Someone who lost money Tuesday?

Here’s my thinking and you can quote me as a “person who has been following the issue closely.” As long as the US political system remains in chaos, there is no incentive for China to sign a full trade deal with Trump.

More tariffs are coming from the US on Dec. 15, and that should complicate things.