Day 1 of the Madrid talks concluded, and China released key information!

On September 14th, the first day of the China-US Madrid talks concluded. In an effort to gain leverage before the talks, the US side released a series of negative signals, deliberately souring the dialogue atmosphere.

This also led to the Chinese side refusing to grant interviews after the first day of the Madrid talks, simply walking away. In an interview with reporters, Bessant simply stated that negotiations would continue on the next day.

This suggests that the talks, like previous ones, were characterized by acrimony, with neither side willing to compromise on substantive issues.

However, this does not mean that the negotiations have made no progress. According to the New York Times, the ultimate goal of the Madrid talks between China and the US is to extend the truce in the trade war. Therefore, the two countries will still strive to reach agreement on certain issues.

Reuters noted that TikTok was not mentioned in the first three rounds of negotiations. The third extension expires on September 17th. Trump himself opened an account in August. Sources confirmed that Washington will extend TikTok for the fourth time.

This is intended to demonstrate sincerity to China. Reuters also noted that a ban on this platform, with 170 million users, would undoubtedly inflame American public opinion, especially after witnessing the tragic consequences of Nepal's ban on social media platforms. The US government would not rashly make a decision that would irritate the American public.

China Releases Key Information

Furthermore, during this critical period in the China-US negotiations, China also released a set of important data, revealing its domestic economic situation and invisibly increasing pressure on the US.

In August, all of China's major pillar industries showed growth, with industrial production growing by 5.2% year-on-year and the service sector by 5.6%. Despite the impact of export tariffs, imports and exports of goods increased by 3.5%, and employment remained generally stable.

Core consumer prices have rebounded, and overall, the recovery is steady. However, continued macroeconomic regulation by relevant departments is necessary.

Comparing the US data to August, the situation is disastrous. The Consumer Price Index (CPI) rose 2.9% year-on-year in August, while the core CPI remained at a high of 3.1%. This means that US inflation continues to rise.

The US job market remains bleak. Non-farm payrolls increased by only 22,000 in August, and the unemployment rate rose to 4.3%, a recent high.

Therefore, even if the US chooses to cut interest rates at this time, it still faces the risk of rising inflation.

In short, the current domestic situation in the US has completely deprived it of the confidence to engage in a tariff war with China. This is why he has recently been frequently visiting Biden's social media, calling on the EU, NATO, and the G7 to impose sanctions on China and help him withstand the initial wave of damage from China. But is that possible? No one is stupid. Who would be willing to risk resignation to help the Americans?

Trump, cornered, finally faces reality.

Faced with the lack of support from the EU, the G7, and NATO, Trump has been forced to face reality and, during the US-China tariff negotiations, has once again begun to toy with the idea of ​​reviving US manufacturing.

Foreign companies investing in the United States are urged to bring not only vast sums of capital but also skilled personnel and train local workers to revitalize American manufacturing. They also specifically call for the return of industries like chips, semiconductors, computers, ships, and trains to the United States to help maintain American greatness.

While the idea is good, it teaches Americans what benefits other countries have waiting to be suppressed by the United States. Furthermore, after the South Korean workers' incident, which foreign company would dare to invest in the United States? The Trump administration is either screwing things up or on the verge of further screwing things up.