I no longer think any deal can be made unless China throws in a HUGE geopolitical treat. Even then, they don’t have that much to offer...
Their economy is just in too bad of a shape now for them to do serious change to it. And that’s their own fault.
Well, let’s see how long they can support the Yuan lol!
“let’s see how long they can support the Yuan”
They have already announced looser money through their bank practices - within hours of President Trump announcing the new tariffs. They are addicted to injecting liquidity - it is one of the few things they have to throw at the problem. The problem is getting a lot worse looking ahead, and they are getting less bang for their buck from inflating money supply.
They only have so much foreign reserve to manipulate their currency and stock markets. They are OK on that front now, but when/if they do hit those constraints (quite possible) - then Katie bar the door!
“they don’t have that much to offer...”
That is the Bottom Line. The threat they pose to the rest of the World has grown so great, that it dwarfs the possibility that they will suddenly have a complete change of heart about everything.
We simply have to divorce ourselves from dependency on them, stop subsidizing their evildoing, and manage their replacement with other suppliers.