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Analysts at Rabobank suggest that the simmering systemic crises has gotten worse as the US President Trump spoke about upcoming US-China trade talks, stating it’s highly unlikely he will refuse to proceed with a tariff hike from 10% to 25% on the UD200bn of exports already in place, and could easily push ahead with a 10-25% tariff on the remaining USD267bn of Chinese exports too.

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“The terms of any China ‘deal’ were also made crystal clear:  The only deal would be China has to open up their country to competition from the United States.  As far as other countries are concerned, that’s up to them.” The US President also ‘went there’: he specifically mentioned that a certain US electronics firm’s goods could “very easily” handle a 10% duty. (And CNH duly spiked from 6.94 to 6.95.) Whispers are that China is prepared to offer some kind of fudge over a slow-burn WTO reform as long as its core economic model of state-capitalism is left untouched, but that’s hardly going to meet the criteria we just had stated.”