U.S. And China Closer To Reaching Trade Deal
China has recently announced that trade talks with the U.S. have been going smoothly.
This latest development adds a tone of optimism from Chinese officials that has not been seen recently. Earlier today China’s chief trade negotiator, Liu He, had a phone call with Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. Although the specifics of the call are relatively unknown, the tone of the call was such that there is confidence from China that an incremental trade deal can be reached.
Recently, China’s Community Party issued guidelines that affirm stronger defense of intellectual-property rights. This was a major demand from the U.S. as a requirement towards any negotiations in the trade war.
However, President Donald Trump’s advisors are unsure as to whether it is most political expedient to resolve the trade war before or after the upcoming election cycle. Resolving the trade war would give Trump a win that would bolster markets and further legitimize him as President. However, waiting out until after the 2020 election would allow him to use the trade war as an opportunity to showcase his ability to hold out longer in a showdown.