In each of the seven chapters of the draft trade deal, China had deleted its commitments to change laws to resolve core complaints that caused the United States to launch a trade war: Theft of U.S. intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation.
Beijing is unlikely to fold to Washington during the upcoming negotiations as China’s domestic politics will “not permit them to simply be inert in response," Rudd said.
“People often forget that, in one-party states like China, where you’ve got the Communist Party, there’s big internal politics at play here as well and President Xi Jinping can’t be seen to be weak," he told CNBC.
Stocks hit session highs after Trump’s late Friday tweet and closed near those levels. The president also noted that the trade talks with China were “candid and constructive." Trump said the new tariffs on $200 billion worth of Chinese goods “may or may not be removed" in the future.
U.S. Gives China a Month for Trade Deal as Talks Deadlocked (May 10, 2019)
Securing a trade deal is likely to get harder from here unless outside factors, such as an economic downturn, force a compromise, according to Ely Ratner, a China expert who served in the administration of President Barack Obama and is now director of studies at the Center for a New American Security think-tank.
Apple Inc. (AAPL)
Cook warned in January that a weakening economy in China would hit Apple financially. The company lowered its 2019 revenue forecast accordingly to $84 billion. Apple blamed a variety of factors for the lowered guidance but especially focused on slowing revenue “primarily in Greater China," saying getting overseas customers to upgrade to newer iPhones was “not as strong" as Apple expected
Apple Not Yet Hurt by Tariffs – Here’s When It Could Be (May 10, 2019)
Tesla, Inc. (TSLA)