The press has reported and the waves of market experts have suggested that the US China trade deal will not take place anytime in the future. There are just too many obstacles and the US and Chin are both fighting for a deal to win for their supporters. Despite the skepticism in the West, with papers in Europe and the US saying there will not be a deal, the press in China, especially over the past two weeks have changed.
They are now saying that Trump will move towards a deal with President Xi, perhaps even at G20. The reports coming out of the China press came just after President Trump tweeted that he had a productive phone call with President Xi. Trump tweeted that he, “had a very good telephone conversation with President Xi of China.” The press will of course sell the accepted narrative and drive new stories as the people are hungry for them.
However, the fact remains that Trump wants a deal that would support his election drive while Xi must keep the hard-liners in his party happy. China would likely see a more friendly government in the US if Trump were to be voted out of office. So in our view, there will be no deal in the coming weeks or months. Neither side will give in, at least for now.