MNI: ### POV: SIGNS OF GOODWILL DON'T ALTER TRADE....>

MNI: ### POV: SIGNS OF GOODWILL DON'T ALTER TRADE WAR UNDERTONES

- The 2-week delay re: the implementation of the next round of U.S. tariffs on

Chinese goods & potential for Chinese purchases of U.S. agricultural goods

(previously touted elsewhere) are positive developments on the trade war front,

but do little to change the undertones of the well documented trade war.

- China previously outlined its 3 red lines in the negotiations: 1) Beijing

wants the U.S. to remove all additional tariffs on Chinese goods. 2) The target

set by the U.S. for goods bought by China should match real demand. 3) The deal

must be 'equal' & 'dignified' for both sides. These issues, coupled with the

U.S. wishes & what some perceive to be an outright push-back against China's

increasing econ strength & global influence create much deeper problems.

- Elsewhere, Fox sources noted that a snr Chinese diplomat suggested that China

"cannot be deterred in its anti-poverty efforts & long-term growth strategy even

amid trade talks; won't make any compromise, even promising to eliminate IP

theft would stall growth more now." The source also pointed to a growing

nationalistic voice in China, providing further hurdles to overcome.