More bad economic data; US-China talks; Another Xi inspection tour and speech

A new batch of economic data shows China’s economy is struggling, and while the possibility of an interim, small US-China trade deal may lift confidence it would do little to help the PRC economy. It is struggling not because of US policies but because of its own structural problems, and Beijing’s policies.

The bad data has spurred another wave of hope for new stimulus policies from Beijing. So far the government seems to be holding the line against any major efforts, but it is going to become increasingly difficult politically to stay the course.

Vice Minister of Finance Liao Min and Vice Minister of Commerce Wang Shouwen are leading the PRC delegation to DC this week, with talks I hear scheduled to start Wednesday the 18th. There is increasing chatter about an interim deal by October that relieves some of the political pressures on both sides, but I am still very skeptical of any major breakthroughs. China did announce last week that it would exclude soybeans and pork from additiona…