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Trump Administration continues mixed signals on China

The Trump Administration continues to send conflicting signals ahead of next week’s meeting between President Trump and China’s president Xi.

Trump, repeating earlier comments, told reporters Tuesday he thinks China is anxious to make a deal. He also threatened to impose the additional 250 billion dollars in tariffs if it doesn’t happen.

White House economic adviser Larry Kudlow sounded optimistic in an interview with Fox Business News, indicating that two countries have been talking and progress has been made. At the same time, U.S Trade Representative Robert Lighthizer released a critical report saying China continues its state-backed campaign of intellectual property and technology theft, despite U.S. demands that they cease those activities.

Iowa Senator Chuck Grassley says he’s hopeful the Chinese are ready to negotiate in earnest. Grassley says reports he’s getting indicate that China’s economy is suffering because of the trade war.

“We know their economy has been hurting—or at least hasn’t been growing the way they want it to grow,” Grassley says. “There’s also the feeling among our economists that whatever officials figure you get out of China, it’s a little bit worse than that.”

Grassley says that may make the Chinese more willing to compromise.

Trump and Xi are scheduled to meet on the sidelines of the G20 summit in Argentina at the end of this month.