Speaking from the WH

Pres. Trump adds:

  • We expect to have a meeting in the not-too-distant future
  • he and Xi will perhaps work out the final points and perhaps not
  • There is a very good chance that a deal can be made.
  • if there is a deal, tariffs will not have to go up
  • we are doing well for farmers, it will be the biggest form deal ever made
  • Who knows whether a deal will be made.
  • Round of negotiations has been extended because of the progress being made
  • If he sees progress being made it would not be inappropriate to extend the March 1 deadline and he would be inclined to do that.
  • it is more likely than not that a trade deal will happen (he is going back and forth on whether there will be a deal or not).
  • May or may not include Huawei and ZTE in the deal with China.
  • Dropping charges on Huawei has not be discussed
  • Does not like Memorandums of Understanding. Wants longer term deals.

Meanwhile, Vice Premier Liu says he is delivering a message from Xi to Trump

  • negotiators have made significant progress
  • he hopes the 2 sides will redouble efforts to meet each other halfway
  • From China's perspective, we believe it is very likely that a deal will happen

Now Lighthizers adds:

  • there are some great hurdles left
  • US and China have made progress on some very important structural issues and purchases
  • We have made a lot of progress on technology transfers


  • The Vice Premier Liu has extended his trip by 2 days to continue talking
  • they have concluded a strong agreement on currency
  • depending on how the next few days ago, he may recommend a meeting with Xi in March

Now Wilbur Ross is weighing in with:

  • there is a lot more that needs to be done to get a deal on trade with China

Stocks are moving lower after these comments. I am not sure that Trump sees the trade situation as a "meet in the middle". Regarding IP, there is no half way in the eyes of the admininstration and business leaders. Pres. Trump has also been on both sides of whether there will be deal or not.

There was a bit of a disagreement between Trump and Liqhtihizer. Trump said he did not like MOUs (Memorandum of Understanding) as they were short term in nature. Lighthizer said they are binding contracts. Trump disagreed. Lighthizer defused the confrontation by saying they will use the term trade agreement, not MOUs.

  • The S&P was up at 2794 at the highs. It is down to 2783.78
  • The Nasdaq was up at 7526.78. The price is down to 7500 currently.