A glimmer of hope, perhaps?
The SCMP reports that China's vice premier, Liu He, is still expected to travel to Washington but is now likely to head over on Thursday and then leaving the following day. Citing sources familiar with the matter, the report states that China appears to be seeking a middle ground in trade talks despite Trump's surprise tariff threat over the weekend.
Another source in the report also adds that both sides remain committed to a final agreement but Trump's latest move puts China in a difficult position to respond.
It's fair to say that the proposed trade deal was never something that is significant, in ways that matter at least. I noted before this how it was pretty much like piecing together a car without its most important parts.
I reckon Trump clearly didn't like the idea of that and his tariffs response over the weekend puts China in a position where if they cancel the deal, Trump will lay blame on them for failing to make concerted efforts to make it work. And if they bow down and offer concessions to the US, it would be a blow to China's reputation to their domestic audience.
To be fair, that has been the case of the entire ordeal between US and China trade talks since the beginning. Only this time, hopes of a global economic recovery in the second half of the year hangs in the balance.
