by Martin Armstrong
Armstrong Economics
ASIA:
President Trump’s trade war with Beijing reduced the US’ trade deficit with China last year, although Chinese manufacturers still export far more to the US than vice versa. China’s widening surplus provided ready ammunition to the Trump administration as it placed round after round of tariffs on the country’s goods to get Beijing to correct what it called unfair an trade practices. The trend is set to reverse, with the two countries poised to complete the first phase of a trade deal this week, although many economists dispute Mr. Trump’s view that trade deficits are inherently bad. President Trump and Chinese negotiators are scheduled to sign their pact on Wednesday in Washington. US officials have said Beijing will increase purchases of US goods and services by at least $200 billion over the next two years from 2017 levels. The Chinese side hasn’t made any promises in public. Details about what the two countries agreed on could emerge after the signing. The U.S. is expected to release a version of the agreement.