Market news
09.10.2019, 12:19

U.S. and China still too far apart - ING

Raoul Leering, the Head of International Trade Analysis at ING, notes that among all the negative reports about the forthcoming U.S.-China trade talks, some positive signs have emerged as well. 

  • "At first glance, recent news provides at least some reason to be a bit more optimistic about the US-China trade talks, to be resumed this Thursday. President Trump says that a trade deal could be achieved 'sooner than you think' and the news of Chinese companies increasing their purchases of US agricultural goods last week, using a waiver from retaliatory import tariffs, is a sign of good will. Today's news that China could be prepared to buy additional soy beans adds to the optimism that a deal might be struck.
  • At the same time, the US plans to limit the funding of Chinese companies through US capital markets and has announced a blacklist of Chinese companies, along with sanctions against Chinese officials involved in the clamp down on Uighur people in the West of China. This shows that tensions between the two super powers remain high.
  • Regarding the trade issues specifically, caution is warranted. Things have become complicated for President Trump. Polls show US voters are increasingly worried about the effects of his economic (read: trade) policies, and with just over a year to go before the next Presidential election, it would behove him to strike a quick 'mini' deal. This would substantially diminish the economic uncertainty which has caused US business sentiment to plunge and put a lot of investment on hold.
  • But the chances of such a deal happening quickly seem low, as Trump would need to take out at least some of his demands which are clear red lines for China.
  • For now, both American and Chinese negotiators will be reluctant to acquiesce. This means the best obtainable result for the upcoming round of talks would be for the US to put on hold higher US tariffs on the 15 October and 15 December in exchange for a Chinese commitment to step up buying of American agricultural and energy products, or something very similar to this."

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location