Analysts: Pence and Trump play 'bad cop/good cop' ahead of anticipated China-US summit - Global Times

As expected, China’s Global Times cracked joke of the United States (US) Vice President Mike Pence’s comments criticizing China’s human rights records and support for Hong Kong activists. While relying on analysts, the Global Times said that Pence and US President Donald Trump are playing the bad cop - good cop game before the highly anticipated China-US summit in November in a bid to gain leverage on trade talks. 

Key quotes

"Pence fired off comprehensive and harsh accusations, criticism, and a full-scale attack on China while covering issues like Xinjiang, Hong Kong, Taiwan, the South China Sea, trade, intellectual property, regional security, human rights, religion, and NBA tensions."

"Pence's accusations were not new, like blaming China for taking advantage of an unbalanced or unfair relationship with the US. He also mentioned a few hot button issues like the turmoil in Hong Kong and claimed the US will "stand with" the protesters, despite the protests are getting more violent and losing control."

"Still, the vice president's latest remarks included positive signals compared to last year's speech, which indicated a consensus between both countries is increasing, analysts said."

"Li Haidong, a professor with China Foreign Affairs University's Institute of International Relations, told the Global Times the key target audience of Pence's speech are Americans and the elite. His speech was full of rhetoric praising and commending Trump, aiming to add leverage to the next year's election."

"This latest speech from Pence can be seen as a declaration on reconnecting with China compared with last year's, which was believed to be a declaration of a new Cold War, Li said."

"The significant change and adjustment in the tone at least revealed that a consensus between China and the US is increasing, Li noted."

FX implications

No major reaction to the news could be witnessed as the Antipodeans keep trailing mild losses amid the broad US Dollar (USD) strength and a lack of a major catalyst.