The South China Morning Post and the Wall Street Journal's confirmed Sinocism's reports that Liu He will be coming to DC and that Liu and Steve Mnuchin had a phone call Friday. I am hearing President Trump is concerned about the stock market and the likely economic impact from increasing the 10% tariff rate to 25% January 1st and adding tariffs to the remaining imports from China. Xi really does not want this economic and political headache and so is very willing to cut a deal, though I also keep hearing the Chinese have yet to offer anything really interesting. The odds of a short-term deal may be going up, but I wouldn't expect it do anything to address the broader issues in the relationship.
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