For weeks, the markets have been tossed and turned by news about the trade dispute with China. Both sides have raised tariffs on the other. China even blocked the NBA from airing in the country after an ill-received tweet from the owner of the Houston Rockets.
The head of China’s delegation, Vice Premier Liu He, said that key issues such as subsidies are off the table.
Then, this past Monday, the U.S. Commerce Department made it illegal for eight Chinese companies and 20 Chinese government agencies to do business with American firms. Chinese surveillance technology and AI companies were especially hit hard, as they rely on American parts.
This was followed up by several Chinese officials being placed under visa restrictions, making it impossible for them to travel to the U.S.
Which brings us to yesterday, when China’s trade delegation arrived in Washington, D.C., for the first high-level trade talks since July.
With all these tit-for-tat negotiating tactics, things didn’t look very rosy.
That was until Presidential tweets on Thursday and Friday sent the markets kicking higher on both days.
The stakes are high – President Trump’s next set of sanctions on China are set to go into effect on Tuesday next week.
But despite the tough stance taken by both sides recently, there’s reason to think a deal could be made.
This could continue to drive markets higher.