CTH readers are well versed in the dynamics of the Panda mask -vs- Dragon motives of China.  Therefore we are able to discuss events without the MSM financial filter; which is narrated specifically to the benefit of multinational interests.  Always keep that in mind.

Everything needed to understand the latest panda narrative from Beijing is identified in this simple paragraph:

(Beijing) […] The talks were supposed to have resumed this month but China’s commerce ministry said Vice Premier Liu He, Beijing’s pointman on trade, agreed to October in a phone call with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday. (more)

First, anything from Vice Premier Liu He is panda-speak; he is a tool in the process of Chinese narrative engineering.  All former trade negotiation authority held by Liu He was stripped by Chairman Xi Jinping.  Commerce Minister Zhong Shan is the real voice of Xi and the Beijing authority.
Second, what exactly is Beijing selling?  An “October phone call”…. and that manipulates markets for the multinationals on Wall Street.  A friggin’ announcement of a phone call?
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ADP Payroll analysis for August reflects continued strong gains in the jobs market beating all expectations from the financial pundits.   The official government stats will be released tomorrow (private and public sector); in the interim the ADP payroll of private sector job creation shows that Main Street continues to be very strong.

(Reuters) U.S. private employers added 195,000 jobs in August, above economists’ expectations, a report by a payrolls processor showed on Wednesday.
Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 149,000 jobs, with estimates ranging from 110,000 to 175,000.

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After benefiting from ridiculous preferential treatment by the World Trade Organization under “emerging nation” status for the past two decades, Beijing now turns to the WTO and files a complaint against the U.S. over recent tariffs and countervailing duties.

The substance to Beijing’s complaint is silly.  China claims there was a “leadership agreement” during the Osaka G20 summit not to apply additional tariffs.  However, the latest round of U.S. tariffs on China were in response to Chinese tariffs applied after Osaka.  Bottom line, Beijing is playing political games.
China, once again playing the wounded panda routine, is trying to set up a narrative that President Trump has broken his word.  That’s the cornerstone of their position, and they know such a complaint won’t go anywhere at the WTO; the complaint is really for the use, exploitation, and consumption by President Trump’s political opposition, domestic and international.  (emphasis mine)

HONG KONG/GENEVA (Reuters) – China has lodged a complaint against the United States at the World Trade Organization over U.S. import duties, the Chinese Commerce Ministry said on Monday.

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An interesting article in the South China Morning Post outlines how Chinese companies producing everything from canned mandarin oranges, to mid and high-tier furniture, cannot sustain a business model without access to the U.S. market.
Their problem?…
In essence, when they established their decades-old business model the overwhelming majority of their manufacturing was/is contingent on U.S. buyers.
Right now those Chinese companies are praying the CCP central government keeps devaluing their currency, because U.S. purchasers, including wholesalers and intermediaries, have told those manufacturers they will not pay the import duties.
Apparently, U.S. corporate buyers are leveraging the pressure applied by President Trump – a remarkable dynamic.

Perhaps President Trump has to play the public pretend game to China’s panda mask presentations, but we do not.

The corporate U.S. media are pushing a hard narrative today surrounding claims by Chinese Vice-Premier Liu He and wanting to create “calm” to work in earnest toward a U.S-China trade deal.  However, those who follow the dynamic closely will remember Liu He’s role was changed back in July.  Today’s Panda announcement is pure cunning.
Everything China is doing is intended to make it harder for President Trump to be aggressive in the confrontation:

BEIJING (Reuters) – Chinese Vice Premier Liu He said on Monday that China is willing to resolve its trade dispute with the United States through calm negotiations and resolutely opposes the escalation of the conflict, a state-backed newspaper reported.
Liu, China’s top trade negotiator, was speaking at a tech conference in Chongqing in southwest China, the Chongqing Morning Post reported.

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The third day of the G7 Summit in Biarritz, France, has more bilateral discussions between U.S. President Donald Trump and international leaders outside the traditional ‘group of seven‘ construct.  The topics of Macron’s selected G7 group discussion include planetary sustainability, climate change, biodiversity, oceanography and aquatic justice.
Additionally, President Trump will be holding bilateral economic meetings with President Abdel Fattah al-Sisi (Egypt) and Prime Minister Narendra Modi (India) from outside the G7; and then German Chancellor Angela Merkel from inside the G7.

At the conclusion of the summit, 9:30am EDT, President Trump will hold a joint press conference with French President Emmanuel Macron where it is likely Macron will exhaust his remaining pre-staged effort to advance the cause of multinational globalism; with customary assistance from rude left-wing American journalists.
♦ 2:30am EDT / 8:30am CEST – THE PRESIDENT participates in a bilateral meeting with President Abdel Fattal al-Sisi of the Arab Republic of Egypt, Biarritz, France
♦ 3:05am EDT / 9:05am CEST – THE PRESIDENT departs the Hotel du Palais en route to the Centre de Congrès Bellevue, Biarritz, France
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The structure of the global trade reset is visible.  The China decoupling is underway; the scale of this geopolitical dynamic is incredible.
KORUS  (Korea-US) is in the books; the North American USMCA is complete, pending ratification; the EU has agreed to purchase U.S. beef exports; and effective today the Japan-US deal is agreed in principle (sans auto and industrial products TBD).  Now  President Trump is working on a post-Brexit UK-US bilateral package.

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Treasury Secretary Steven Mnuchin and National Economic Council Director Larry Kudlow discuss the ongoing trade and economic discussions amid the G7 summit in  France.  The G7 was originally formed to address economic issues amid the top industrial economies. President Trump has been trying to return to that focus.
Secretary Mnuchin did a good job knocking back the narrative gnats.

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U.S. President Donald Trump and Prime Minister Shinzo Abe of Japan announced the terms of a new U.S-Japan trade agreement have been reached.  This part of the trade agreement was visible for some time; confirmed today. U.S Ambassador Lighthizer and Japanese Minister Motegi have worked this for a while. [Video and Transcript]

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[Transcript] – PRESIDENT TRUMP: So, thank you very much. We’ve been working on a deal with Japan for a long time. It involves agricultural and it involves e-commerce and many other things. It’s a very big transaction, and we’ve agreed in principle. It’s billions and billions of dollars. Tremendous for the farmers.
And one of the things that Prime Minister Abe has also agreed to is we have excess corn in various parts of our country, with our farmers, because China did not do what they said they were going to do. And Prime Minister Abe, on behalf of Japan, they’re going to be buying all of that corn. And that’s a very big transaction. They’re going to be buying it from our farmers.
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President Trump and Justin from Canada hold a bilateral discussion on the sidelines of the G7 Summit in Biarritz, France.   No-one is exactly sure why Justin from Canada is there; both leaders talked about the USMCA, again; and the media did not have any questions for anyone about Canada. [Video and Transcript Below]

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[Transcript] – PRIME MINISTER TRUDEAU: Well, it’s always a pleasure to sit down with President Trump. We’ve had some good conversations already, particularly on the global economy. The Canadian and American economy are doing well, partially because of the trading relationship we have and the great work we did.
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