US-China Trade Truce Leaves Fundamental Issues Unresolved
Shipping at the Port of Nansha in Guangzhou, China.
Source: Bloomberg
Chinese and US trade negotiators have lined up an array of diplomatic wins for Donald Trump and Xi Jinping to unveil at a summit this week. Those easy hits are pleasing investors, but leave deeper core conflicts unresolved.
President Donald Trump told reporters on Monday that “I really feel good” about a deal with China, after officials this weekend in Malaysia unveiled a slew of agreements to ease trade tensions. That’ll likely see China resume soy purchases in key Republican voting states, while America walks back its latest 100% tariff threat in exchange for securing Beijing’s critical rare-earth magnets.