Chinese President Xi Jinping is suddenly sitting pretty in Asia, thanks largely to missteps by two of his biggest rivals: U.S. President Donald Trump and Indian Prime Minister Narendra Modi.
Modi abruptly pulled out of a 16-nation regional trade deal yesterday, removing a key counterbalance to China. That’s bad news for Japan, which urged India to stay in.
What’s more, China’s asking price is becoming clear for Xi to head to the U.S. and sign a deal centered on agricultural purchases that Trump is seeking ahead of next year’s election. You can read our report here about how Beijing wants tariffs scrapped on as much as $360 billion of Chinese imports before Xi gets on the plane.
The Chinese leader made a pledge to a trade expo today that the phase-one deal would lead to other measures to open China’s markets. But investors are doubtful: The European Chamber said many agreements reached last year saw “no follow-through.”
Still, with Trump and Modi on the sidelines, Xi may not need to worry.