Presidents Trump and Xi agree on an interim trade truce at the G20 summit in Argentina.

Apple Boston

2018-12-09 08:44:00 Sun ET

President Trump meets with Chinese President Xi again at the G20 summit in the city of Buenos Aires, Argentina, in late-November 2018. President Donald Trump and President Xi JinPing, the political leaders of the 2 largest economies on earth, agree to a 90-day trace truce and ceasefire in the Sino-U.S. trade war. After the 3-hour dinner discussion at the G20 summit, Trump agrees to retain the 10% tariffs on $200 billion Chinese goods without raising the tariffs to 25% in the next 90 days. In exchange, China agrees to buy substantial amounts of agriculture, energy, and other goods from America to help reduce the Sino-U.S. bilateral trade deficit.

Chinese state councilor and foreign minister Wang Yi extends many reconciliatory gestures and regards the Trump-Xi summit *candid and amicable*. Wang remains optimistic about opening up the Chinese market for U.S. multinational corporations from Apple and Microsoft to Ford and Merck etc. Wang further expects Sino-U.S. trade delegates to step up serious negotiations toward the eventual elimination of all additional tariffs.

However, stock market analysts and commentators warn that the trade truce may be only an interim tactical solution. This trade truce can barely be a major business breakthrough on substance, but a new framework for subsequent Sino-American economic dialogues. Over the steak dinner at G20, Trump and Xi agree on mutual compromises that help pause their unproductive trade conflict. Both presidents set an ambitious 90-day timeline for Sino-American trade negotiators to reach broader economic agreements.

All key stock market indices worldwide rise in response to the Sino-U.S. trade truce. Dow Jones, NASDAQ, and S&P 500 reap 3% healthy gains for many U.S. stocks. Chinese, European, and other Asian stock market indices see similar 2%-5% gains as a natural result of investor optimism after the Trump-Xi G20 summit. Whether the Trump administration can continue to contain the economic prowess of *China 2025* remains a complex and mysterious national security concern. On balance, the Trump team should downplay the importance of seeking diplomatic means to dramatically reduce the current bilateral trade deficit with China. A more important strategic issue pertains to the fact that several Chinese regulations require U.S. tech titans to transfer critical technologies in the form of both backdoor intellectual property theft and infringement. The latter issue persists as a moot question.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Bank failure resolution and financial risk management: Silicon Valley Bank, Signature Bank, and First Republic Bank.

Dan Rochefort

2023-05-27 11:30:00 Saturday ET

Bank failure resolution and financial risk management: Silicon Valley Bank, Signature Bank, and First Republic Bank.

Bank failure resolution and financial risk management: Silicon Valley Bank, Signature Bank, and First Republic Bank.   What are the main root cau

+See More

MIT financial economist Simon Johnson rethinks capitalism with better key market incentives.

Daisy Harvey

2019-11-23 08:33:00 Saturday ET

MIT financial economist Simon Johnson rethinks capitalism with better key market incentives.

MIT financial economist Simon Johnson rethinks capitalism with better key market incentives. Johnson refers to the recent Business Roundtable CEO statement

+See More

President Trump tweets his key decision to oust State Secretary Rex Tillerson due to intense disagreement over diplomatic affairs.

Fiona Sydney

2018-03-07 07:34:00 Wednesday ET

President Trump tweets his key decision to oust State Secretary Rex Tillerson due to intense disagreement over diplomatic affairs.

President Trump tweets his key decision to oust State Secretary Rex Tillerson after several months of intense disagreement over diplomatic affairs. Trump so

+See More

AYA fintech finbuzz illustrative video tutorials on YouTube

Amy Hamilton

2019-05-05 10:46:10 Sunday ET

AYA fintech finbuzz illustrative video tutorials on YouTube

This video collection shows the major features of our AYA fintech network platform for stock market investors: (1) AYA stock market content curation;&nbs

+See More

China, Russia, France, Germany, and Japan may dethrone the petrodollar.

Jacob Miramar

2018-07-01 08:34:00 Sunday ET

China, Russia, France, Germany, and Japan may dethrone the petrodollar.

Are China and Russia etc gonna dethrone the petrodollar? Over the years, China, Russia, France, Germany, and Japan have made numerous attempts to use their

+See More

Donald Trump and Kim Jong Un meet, talk, and shake hands in the historic U.S.-North-Korean peace summit in Singapore.

Daphne Basel

2018-06-06 09:39:00 Wednesday ET

Donald Trump and Kim Jong Un meet, talk, and shake hands in the historic U.S.-North-Korean peace summit in Singapore.

Donald Trump and Kim Jong Un meet, talk, and shake hands in the historic peace summit between America and North Korea in Singapore. At the start of the bila

+See More