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Trade deal without a lot of substance ... But let’s celebrate anyway

The Phase one signing ceremony will likely be the highlight of next week (Wednesday). It would be a massive shocker if the deal is not signed next week as even the Chinese side sounds positive. The new Chinese Fin-Twit Darling, Hu Xijin, has essentially said the deal will happen...


...and even went as far as praising Trump’s Iran press conference.

The actual substance of the Phase one deal is highly debatable, but the signal value of the signing is of course positive. Beijing has allegedly committed to buying an additional USD 32bn worth of agricultural goods from the US over the next two years. 

Let’s put it short; it ain’t gonna happen, in particular since grain is apparently not part of the deal. All that noise and all those tariffs just to take agricultural purchases back to the level they were at when Trump took office. 

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