Currently, US-China trade negotiations have stalled. US Treasury Secretary Scott Bessent noted that personal involvement from both presidents is needed to advance a deal.
Status of Negotiations
Scott Bessent reported that progress in negotiations between the world's two largest economies has been slow since mid-May. He emphasized that only direct involvement from President Donald Trump and President Xi Jinping could help achieve a deal.
Impact on Global Markets
Two weeks ago, Bessent led breakthrough negotiations that resulted in a temporary truce in the trade war and the rollback of tariffs for 90 days. This decision triggered a sharp rally in global stock markets, but U.S. complaints about China's economic system remained unaddressed.
Outlook for Future Talks
Bessent expressed confidence that once Trump's preferences are made known, China will return to the negotiation table. Despite court interventions, he observed no shifts in trading partners’ positions and planned to meet with a Japanese delegation to continue discussions.
Negotiations between the U.S. and China are at a critical stage. The involvement of top leaders is crucial for the next steps and potential resolution of trade disputes.
