Trade War media, page-19

There are very complex issues to be dealt with to resolve this dispute with some needing much more time to resolve than others. The U.S. has listed some 142 "demands" for want of a better term, which it wants the Chinese to alter its trading practices over. This will take quite some time at various hierarchical levels but nonetheless the wheels have been set in motion and are certainly looking very positive, even in the short term as has been proven by the extension of the current talks. 

One of the easiest facets of the trade dispute to tick off as far as the Chinese are concerned is the trade imbalance with the U.S.. Demonstrating commitment to achieve this is no real skin off any Chinese noses yet will give Trump a perceived victory whilst the more difficult things such as intellectual property theft and forced technology transfers are worked through. How these two will be policed into the future will be interesting but not our concern at present.

A green light from the Chinese to buy more U.S. agricultural products and LNG for example won't alter the trade deficit by a great deal but is something tangible and easily digested by the voters and equity markets. Importantly, it is precisely these 2 products that have been touted so much in recent days that will be a demonstration of goodwill in getting the ball rolling in finding common ground and an eventual solution. These are also the two commodities that the Chinese want to get their hands on more than anything else and much sooner than later. Feed their population and stop them suffocating at the same time. I believe lifting the lid on allowing buyers to sign up for U.S. LNG will be one of the earliest results of the current trade discussions as it's one of the easiest and shows both parties are heading in the right direction which they appear to be doing. And who do we know will be an immediate beneficiary of this? You betcha!

Cheers

MW