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from The Great Debate:

The looming U.S.-China rivalry over Latin America

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President Barack Obama meets with Chinese President Xi Jinping (L) in California, June 7, 2013. REUTERS/Kevin Lamarque

Though the U.S. and Chinese presidents heralded a “new model” of cooperation at their weekend summit, a growing competition looks more likely. The whirlwind of activity before President Barack Obama met with President Xi Jinping in the California desert revealed that Beijing and Washington’s sights are set on a similar prize -- and face differing challenges to attain it.

Their focus is Latin America and the prize is increased trade and investment opportunities in a region where economic reforms have pulled millions out of poverty and into the middle class. Latin America is rich in the commodities and energy that both China and the United States need, largely stable politically and eager to do deals.

Consider the travel itinerary: Obama visited Mexico and Costa Rica last month. Vice President Joe Biden recently went to Colombia, Trinidad and Tobago and Brazil. Chile’s president paid Obama a visit last week, Peru’s leader arrived Tuesday and Brazil’s is due in October.

from The Great Debate:

Sit back and enjoy the Kabuki trade show

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jamessaft1.jpg--James Saft is a Reuters columnist. The opinions expressed are his own.--

Financial markets have plenty to be worried about but their latest concern -- a trade war between the United States and China -- should not be on the list.

Aligned self interest and a knowledge on both sides of the causes of the Great Depression should limit matters to a kind of trade war Kabuki, a highly stylized piece of theatre in which the United States shakes its fist and China responds in kind but no blows land.

from Financial Regulatory Forum:

U.S. tyre duties fuel trade tension with China

By Chris Buckley
BEIJING, Sept 14 (Reuters) - A U.S. decision to impose special duties on Chinese tyres could open the door to a host of trade complaints against Chinese products, creating tensions as Western nations seek Beijing's support at a G20 meeting.

China responded swiftly to U.S. President Barack Obama's announcement of safeguard duties on tyre imports from China on Friday, saying on Monday it would request World Trade Organisation consultations with the U.S. over the duties.

from Shop Talk:

Check Out Line: A truly depressing forecast

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Check out this cheerful forecast form Societe Generale. FINANCIAL/HOLIDAYS
 
The French bank's cross asset strategist, Albert Edwards, said the U.S. economy is likely to enter a depression. Oh, and look out for a global trade war with China.
 
For retailers reeling from the worst holiday season in four decades, the forecast cannot be welcome.
 
Edwards predicts the S&P 500 is set to fall another 40 percent from recent levels.
 
But there could be another problem looming, he wrote in a research note.

"It is becoming clear that the Chinese economy is imploding and this raises the possibility of regime change. To prevent this, the authorities would likely devalue the yuan. A subsequent trade war could see a rerun of the Great Depression," he said.
 
There you have it. Happy New Year.
 
Also in the basket:
 
Black Angus Steakhouse parent files for bankruptcy
 
Circuit City still in talks over potential sale
 
Deal-form-hell award to Landry's (New York Times DealBook)

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