With the next wave of US tariffs set to hit as soon as Wednesday, and with trade negotiations stalled for weeks, Beijing and Washington are said to be eager to trying talks in order to avert a full-blown trade war, according to Bloomberg, citing two people familiar with the effort.
According to Bloomberg sources, representatives of Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look for ways to reengage in negotiations. However, they have cautioned that a specific timetable, the issues to be discussed and the format for talks aren’t finalized, but at least there is agreement among the principals that more talks need to take place.
After some early success, negotiations have been stalled for weeks, with both sides in a standoff. Meanwhile, high-level US talks on trade posture with China are ongoing. Complicating matters, however, is a harder line approach taken by US trade representatitve Robert Lightizer, who is in charge of the US's "301 investigation" that resulted in the tariffs, and which concluded that China has been stealing US technology.
The next wave of tariffs is set to kick in as soon as Wednesday, with the possible imposition of $16 billion of duties on Chinese imports - a move Beijing has vowed to respond to with the same level of tariffs on US products.
Predictably, both stocks...
... and the Yuan...
... have surged following this report that war de-escalation may be coming.
Then again, we've been here before. As a reminder, this latest renewed "peace" effort is being led by Mnuchin and Chinese Vice Premier Liu He - the same two allegedly brokered a truce in May, which was promptly shattered last days later by more hawkish members within the Trump administration, and the president himself.