President Donald Trump had kind words for President Xi Jinping ahead of their likely meet up at the G20 conference at the end of the month. While the United States and China remain locked in a trade war, markets rallied on hopes that the two countries could come to an agreement.
Speaking at the White House, President Trump said:
“I have a very good relationship with President Xi. We’ll see what happens. I think we have a chance. China wants a deal. They don’t like the tariffs.”
Apparently, President Trump also talked with President Xi by phone yesterday. Xi has agreed to meet with Trump on the sidelines of the G20 conference. Stock markets surged by more than 1 percent following the news.
Still, the United States and China seemed close to striking a deal in the past before negotiations fell apart. This past spring, a deal appeared all but imminent. However, in early May trade talks started to unravel with both sides unwilling to make concessions. Both countries have since blamed one another for the breakdown.
After talks broke off, President Trump raised tariffs from 10 percent to 25 percent. Many analysts argue that American consumers and businesses are ultimately paying for these tariffs. At the same time, however, many companies have begun contemplating moving production out of China.
While talks are likely to take place, most of China’s state media has remained highly critical of the United States. Several opinion pieces have called for China to fight to the “bitter end” and to not compromise with the United States. With both sides so firmly dug in, a major breakthrough may not come at the G20 conference.