China Trade Talks to Enter a More Serious Phase Next Week

Cheryl Sanders
February 10, 2019

U.S. President Donald Trump said Thursday he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal. According to President Trump, a meeting with Chinese President Xi is unlikely to occur before 1 March (the self-imposed deadline for a trade deal).

Trump said last week he did not think he would need to extend the March 1 deadline, adding that he believes "every point will be agreed to" when he meets Xi.

However, Trump's recent comment had substantially aired negativity and dampened the hope of reform of quick trade pack, meanwhile impacting the global stocks dreadfully and fueling a steep slip in global stock markets including the U.S. & emerging market shares. Trump has now dashed China's hopes for a resolution this month, confirming earlier reports suggesting the two would not meet any time soon.

Trump has been saying. "But that is off in the distance still at the moment", added the White House Economic Advisor. Reuters reports the news has "prompted a sharp selloff in usa stocks".

Asked if a meeting could happen by March 1, he said: "No".

"I could see where that would impact the markets because, obviously, we had a lift in the month of January from optimism surrounding these trade talks", said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

Let's put it this way: a diplomatic spat between France and Italy is making its way across the major news headlines at the same time as when investors are still no way nearer to understanding what is going to happen with Brexit in the run up to the March 29 Article 50 deadline, so it is quite possible that investors will prefer to have the United States dollars in their portfolio until the necessary guidance is provided for what could happen with either the Euro or the British Pound over the coming weeks.

President Donald Trump and Chinese President Xi Jinping now aren't expected to meet later this month. President Trump has repeatedly threatened increasing tariffs on various Chinese goods imported to the U.S. if the two sides do not broker a permanent deal to end the standoff.

In his State of the Union address on Tuesday, Trump said a trade deal needed to include "real structural change to end unfair trade practices, reduce our trade deficit and protect American jobs".

Lighthizer and Steven Mnuchin, the Treasury secretary, will lead an American delegation to Beijing next week for more trade talks. The 90-day negotiations have, since starting, spooked investors in stock markets in China and the US.

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