It’s all about trade this morning.

China and NAFTA are coming down to the wire and while there are deadlines involved with each I suspect resolution is being forced by a genuine effort to move forward.

This morning the media seemed fixated on comments that President Trump expressed doubts on a China trade deal.  I think most of the comments from President Trump and the Chinese government are part of public posturing and position playing to their own constituents. 

Meanwhile China backed down from its tariffs on Sorghum and there are reports the country is ready to make a deal that reduces our trade deficit by $200.0 billion.  While there has been some pushback I am convinced such an offer has been extended.

The reality is both countries want to make a deal and the fact is China is more eager to do something quickly on opening its markets and lowering tariffs as long as we don't curb their China 2025 ambitions that center around technology dominance. 

This is where the internal fighting comes from.  Peter Navarro, who has studied China and lived in the Far East, is playing a much longer game than winning the midterm elections.  He wants the deal to focus on three things:

• Stopping IP theft
• Stopping forced joint ventures
• Limiting China investments in Silicon Valley

Right now I believe a deal is going to happen I'm just not sure about its final composition other than it will probably be overwhelmingly tilted toward trade than technology.