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Analysts Pessimistic About Breakthroughs at Upcoming US-China Trade Talks

Joyce Huang

   Both U.S. and Chinese stock markets recently soared on news that
   Washington and Beijing have agreed to resume high-level trade talks
   early next month in anticipation of what China said was to "lay the
   groundwork for meaningful progress" in their trade dispute.
   But analysts urge investors not to get their hopes up, saying that
   China has not taken U.S. President Donald Trump's tough stance
   seriously and a final solution to effect structural changes or major
   breakthroughs is nowhere in sight.
   Concessions not enough
   "Negotiations at different stages are sure to take place. But that
   doesn't mean, at this stage of negotiations, some small concessions
   will do the tricks. That's not possible," said Lu Suiqi, associate
   professor of economics at Peking University.
   He said that Beijing has been underestimating Trump's warnings, often
   made through tweets.
   The U.S. president, on Thursday, tweeted comments by U.S. property
   mogul Sam Zell, in an apparent message to China.
   "The Chinese are very adept at not accepting anything. You've got to be
   very tough, and that's what Trump is doing. It's in China's interests
   to correct," Trump quoted Zell as saying on business television channel
   CNBC.

     "The Chinese are very adept at not accepting anything. You've got to
     be very tough, and that's what Trump is doing. It's in China's
     interest to correct, and I think we'll end up with a solution that's
     dramatically better than we have today. Frankly, I think the impact
     of what...
     -- Donald J. Trump (@realDonaldTrump) [1]September 4, 2019

   There are, however, few signs that China is doing just that.
   Chinese state newspaper Global Times painted a rosy picture of
   prospects for the upcoming talks, although it also acknowledged that
   the gap between both countries remains wide.
   Impressed with China's endurance?
   In an editorial titled "October China-U.S. Trade Talks Worth the Wait,"
   the Chinese government mouthpiece on Thursday said, "Washington has
   more economic advantages, while Beijing has more political advantages'¦
   it is believed that China's endurance has impressed the U.S. Both sides
   have a greater understanding of each other's attitude and bottom line."
   Darson Chiu, a research fellow at the Taiwan Institute of Economic
   Research, argued that tariff hikes are hurting China more than the U.S.

References

   1. https://twitter.com/realDonaldTrump/status/1169253298169438208?ref_src=twsrc%5Etfw

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