The Chinese negotiating hand is quite firm right now, says China Beige Book CEO Leland Miller

China's Economy & Trade Talks - China's economy is in relatively good shape, with July data showing improvement compared to June, although growth is not exceeding year-ago levels [1][2] - China has included export controls in trade negotiations, giving them significant leverage, particularly concerning rare earths and critical minerals [3][5] - The inclusion of export controls has created a situation of mutually assured destruction, giving China a choke point over the United States economy [6] Manufacturing Sector - Despite PMI data suggesting weakness, the manufacturing sector in China remains strong and continues to export [9][10] - While exports to the United States have contracted, there has been a surge in exports to Asia, indicating the manufacturing machine is still productive [10] - Manufacturing's strength is crucial as China currently lacks other significant growth drivers [11] Security Concerns & Chip Industry - China is raising potential security risks with chips, potentially as a response to concerns about Huawei [6] - There are concerns about the future ability to geographically track chips, leading to worries about transshipment and potential circumvention of regulations [7]