Positive signs emerging from US-China trade talks – Danske Bank

According to analysts at Danske Bank, there were some positive signs from the trade talks between the US and China after the Chinese side said in a statement that the negotiations had made 'important progress' and described the discussions as 'candid, specific and constructive'.

Key Quotes

“On the US side, both Donald Trump and his top negotiator Robert Lighthizer reported substantial progress. Trump also said that he and Chinese president Xi Jinping would meet soon to try to seal a comprehensive deal.”

“Steven Mnuchin and US Trade Representative Lighthizer are scheduled to visit China in mid-February to hold the next round of talks. We see the developments as a further sign the two sides are keen to make a deal and continue to expect a deal by the end of Q2 (75% probability). That we have not yet met any major roadblocks in the talks - even after negotiations about the most thorny issues - suggests to us that it is indeed possible to make a deal.”

“In our view, it will still be difficult to meet the 1 March deadline but it seems increasingly likely that Xi and Trump will sign a deal at a meeting at some point in March.”