Jan 10, 2019 (China Knowledge) - Following extended rounds of talks between U.S. and China on the trade war, in Beijing this week, the two countries seem to be on track to reach an agreement soon.
According to China’s Foreign Ministry spokesperson Lu Kang, both parties were serious in conducting the consultations over the three days of discussion with the U.S. Trade Representative office also hinted at progress on China’s purchase of more American goods and services.
The recent talks are the first face-to-face talks between the representatives of the two countries since the ceasefire agreed on 1st December last year. The next meeting between the two sides may take place at the World Economic Forum from January 22nd to 25th when President Trump meets Vice President Wang Qishan.
On Tuesday, President Trump had expressed optimism through a tweet on Twitter saying that talks in China were going well, suggesting that he may be more open to reaching a deal with China.
This comes amid increasing volatility in the U.S. stock market with the Dow Jones Industrial Average recording a 1,000-point gain within a single trading session on Boxing Day last year, followed by a 800-point swing the next day.
President Trump who has often used the strong performance of the U.S. stock market as an indicator for the success of his administration, has grown increasingly concerned over the recent market turbulence, criticizing the Fed for interest rate hikes on multiple occasions.
President Trump may now look towards coming up with a deal with China in an attempt to shore up and reduce market volatility in the U.S. stock markets.
Over the week, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have all seen steady increases on expectations of a positive result from the trade discussion.
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