Trade Deal With China at G20 Summit?
There is a lot of speculation that President Trump and the President of China will reach a trade deal at the G2o Summit this week. Apparently the staffs are meeting now and the Presidents will meet on Friday and Saturday. Some are convinced there is no way the United States and China can reach an agreement (grain traders) while others think a deal is possible.
Apparently China was waiting until after the elections thinking that President Trump may be weakened if his party loses the House and Senate. That turned out pretty much as expected with the Republicans holding the Senate and the Democrats gaining control of the House.
There was also a lot of talk that South America cannot supply all the beans China needs so China will have to come to the United States. So far they have not bought beans from the United States since the trade war started. However, other countries that typically buy beans from South America have bought from the United States because China bough all that were available in South America..
Some livestock traders think China will agree to a trade deal because they need the pork. Remember, African Swine Fever is spreading and China has had to euthanize around 200,000 pigs to try and stop the spread of the disease. China ha between 400 and 500 million pigs, So, euthanizing 200,000 is not eve a rounding error.
However, if African Swine Fever continues to spread they might have to euthanized a lot more pigs. So they may be forced to import pork from the United States? That is possibly a reason to try harder to get an agreement with President Trump and the United States.
I am hoping we can get an agreement because this trade war is affecting farmers quite a lot. It seems China would have an interest in getting a trade deal too. However, it is a Communist Country and the leadership may decide that being hungry is a sacrifice their population may need to endure to win the trade war!