China Trade Talks Should Provide Direction

Trade talks between the U.S. and China this week should provide an early indication as to what political tensions between the two nations may disrupt the talks. Deputy U.S. Trade Representative Jeff Gerrish will meet with Chinese officials in Beijing to begin discussing measures the U.S. seeks to allow the current trade war end between the two. If the talks are favorable to the U.S., Politico reports that could lead to higher level talks with higher ranking officials. The U.S. has set a March deadline for China to agree to trade policy reforms. Meanwhile, China is opening access to its economy back to the United States through purchases of U.S. agricultural products. The state of the Chinese economy is seen as dire by some analysts, which could be a motivation to seek an end to the trade war. However, it remains unclear what specific demands the Trump administration will make and if China deems them reasonable or not.