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

Disney acquires 21st Century Fox in a $52 billion landmark deal.

Amy Hamilton

2017-12-15 07:42:00 Friday ET

Disney acquires 21st Century Fox in a $52 billion landmark deal.

Disney acquires 21st Century Fox in a $52 billion landmark deal. This deal has a total value of about $66 billion while Disney assumes $14 billion of Fox

+See More

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iran.

Jacob Miramar

2019-05-13 12:38:00 Monday ET

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iran.

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iranian oil exports. U.S. State Secret

+See More

What are the mainstream legal origins of President Trump's new tariff policies?

Amy Hamilton

2025-06-13 08:23:00 Friday ET

What are the mainstream legal origins of President Trump's new tariff policies?

What are the mainstream legal origins of President Trump’s new tariff policies? We delve into the mainstream legal origins of President Trump&rsquo

+See More

The Trump administration imposes 10% tariffs on $200 billion Chinese imports.

James Campbell

2018-09-19 12:38:00 Wednesday ET

The Trump administration imposes 10% tariffs on $200 billion Chinese imports.

The Trump administration imposes 10% tariffs on $200 billion Chinese imports and expects to raise these tariffs to 25% additional duties toward the end of t

+See More

Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown.

Olivia London

2019-01-05 11:39:00 Saturday ET

Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown.

Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown. President Trump remains adamant about having to shut d

+See More

Global trade transforms from labor cost arbitrage to high-skill knowledge work.

Laura Hermes

2019-01-29 10:33:00 Tuesday ET

Global trade transforms from labor cost arbitrage to high-skill knowledge work.

Global trade transforms from labor cost arbitrage to high-skill knowledge work. In fact, multinational manufacturers have been trying to create global suppl

+See More