On Tuesday morning, US President Donald Trump lashed out at China just as the world’s two largest economies are set to resume trade negotiations.

In Hong Kong, hundreds of protesters gathered at two police stations after 44 people were charged with rioting, the first such charges in the extradition bill crisis that has gripped the city since June.

Trump criticizes China as trade talks set to resume

In a series of tweets on Tuesday morning (US time), Trump lashed out at China for its unwillingness to buy American agricultural products and that it continues to “rip off” the US, just as the two countries resumed negotiations (Bloomberg, 30 Jul). Trump said that, “China is doing very badly, worst year in 27 - was supposed to start buying our agricultural product now - no signs that they are doing so. That is the problem with China, they just don’t come through.”

According to an article on CNBC (30 Jul), despite Trump’s allegations, China insists that it has bought US agricultural products; state-run media agency XinHua said that millions of tons of soybeans from the US have been shipped to China since 19 July 2019, among other products.

Trump’s criticisms came as an entourage led by Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are in Shanghai to meet with their Chinese counterparts, resuming stalled negotiations toward a much-anticipated trade agreement.

Meanwhile, the Federal Reserve (the Fed) is expected to cut US interest rates for the first time in a decade on Wednesday (Reuters, 30 Jul). The Fed is due to release its policy statement at 2pm EDT (2am in Malaysia).

Riot Charges in Hong Kong

According to an article on South China Morning Post (SCMP) (30 Jul), forty-four protesters arrested in early confrontations were charged with rioting and are set to appear at the Eastern Court in Sai Wan Ho today (Wed, 31 Jul).

Further in the SCMP article, at 10:30pm last night (Tue, 30 Jul), crowds gathered outside the Kwai Chung and Tin Shui Wai police stations. At the Kwai Chung police station, police officers in riot gear used pepper spray on protesters who attacked them, while tensions flared at the Tin Shui Wai station after at least two people were arrested at a nearby Lennon Wall, though all suspects were eventually released.

Source: Macquarie Research - 31 Jul 2019