High-level trade negotiations between the U.S. and China broke down after President Donald Trump turned up the rhetoric against Beijing.
Beijing said that further talks can’t proceed unless Washington adjusts its “wrong actions” but Trump still predicted that a deal could be reached “fast.”
However, Tan Min Lan, Asia-Pacific head of chief investment office at UBS Global Wealth Management, predicted that any deal between the U.S. and China will likely only come “just before 2020.”
With both the S.and China avoiding any severe economic downturn so far, there’s little incentive for the two countries to strike a trade deal quickly, according to UBS Global Wealth Management.
High-level trade negotiations between the world’s two largest economies broke down after President Donald Trumpturned up the rhetoric against China. Beijing said that further talks can’t proceed unless Washington adjusts its “wrong actions” — but Trump still predicted that a deal could be reached “fast.”
At a media conference during his state visit to Japan, Trump said the U.S. is “not ready” to sign a deal with China but the two countries will have a “great trade deal” some time in the future.
Tan Min Lan, Asia-Pacific head of chief investment office at UBS Global Wealth Management, predicted that any deal between the U.S. and China will likely only come “just before 2020.”
“It’s quite clear that trade tensions have re-escalated and at this point in time, there isn’t enough pain on either side for a deal to be imminent,” Tan told CNBC’s “Street Signs”. “If you look at United States, actually the economy is quite strong ... On the China side, we know that it is able to at least stabilize the economy.”
Unexpected escalation
Officials from Washingtonand Beijing were sending signals that trade talks were going well in the last few months before things turned tense in recent weeks. Trump unexpectedly accused China of reneging on a deal and announced that tariffs on $200 billion worth of Chinese goods would increase to 25% from 10% on May 10. Beijing retaliated and raised levies on $60 billion worth of U.S. products.
