Trump eyes a bigger deal with China that would include nuclear weapons – report

NYT report citing ‘more than half a dozen current and former advisers and others familiar with Mr. Trump’s thinking’:

• the president would like to strike a wide-ranging deal with Xi, beyond just trade
• Would go beyond commitment to buy US goods
• Would also include nuclear weapons security
• the Trump administration has not yet settled on what it wants from China
• Lutnick, Bessent and Musk (who has a huge auto plant in China) are telling Trump to make a deal

The Australian dollar has rose on this but it’s a good sign for risk assets in general and underscores the idea that Trump doesn’t really want to use tariffs.

Separately (but perhaps not coincidentally) this came from China today:

• China unveils action plan to stabilize foreign investment
• China to fully eliminate foreign investment restrictions in manufacturing sector
• China to expand pilot programs for opening telecom, healthcare, and education sectors
• China to promote orderly opening up in the biopharmaceutical field
• China to lift restrictions on domestic loans for foreign investment firms, easing M&A investments

Does that not sound like a offer to the US?

This article was written by Adam Button at www.forexlive.com.