An unexp. cancellation of the Chinese off'l...>

CHINA: An unexp. cancellation of the Chinese off'l trip to the U.S. farmlands

triggered risk-off flows late Friday, although NYT sources have subsequently

played this down, suggesting that the Chinese side wanted avoid a "media

circus." The cancellation came after Trump noted that he wouldn't be interested

in a "partial" trade deal & that he doesn't need a deal before the '20 elex.

- The off'l Chinese & U.S. statements pointed to the constructive nature of the

jnr ministerial level talks with a nod to the snr level talks that are set to

take place in Washington in Oct. Various source reports have suggested that the

meetings could take place on Oct 10-11. Although the U.S. TR did note that

"Chinese negotiators didn't bring any major new offers to DC." It really does

seem that the meeting was a placeholder ahead of next month's top-level talks.

- Elsewhere, there was news that the U.S. will temporarily exempt > 400 types of

Chinese products from tariffs, while U.S. regulators approved 10/15 requests for

tariff exemptions filed by Apple. Looking ahead, it would probably be wise to

suggest that China will be keen to avoid any negative headlines ahead of the

70th anniversary of the founding of the PRC, which falls on October 1.