The U.S. President Donald Trump is intending to meet with Liu He—China’s Vice Premier—in recent time, according to a White House agenda. The event is planned to take place in the Oval Office. That comes since Washington and Beijing seemed to be closing on an agreement that will end to their ongoing trade dispute. Larry Kudlow—Economic Advisor at the White House—told reporters that Beijing had recognized that the U.S. has lawful gripes about forced technology transfer, intellectual property theft, and cyber hacking. That will be an important step toward signing a contract, but it does not assure that the two largest economies globally could sort out enough of their divergences to get a deal signed.
Kudlow further added, “For the first time, they have conceded that we have a point. Previously, they were in denial.” Lately, the Financial Times stated that the executives negotiating a trade agreement have solved most of the exceptional issues but are still bargaining over how to execute and enforce such an agreement. Execution and enforcement for long have been anticipated to be the main negotiation sticking points. Myron Brilliant—Executive VP and Head of International Affairs at the USCC (United States Chamber of Commerce)—told CNBC, “Without enforcement, this agreement fails. You need to have application methods that will make sure that both parties have trust that this contract is sustaining and verifiable.”
On a similar note, recently, the U.S. treasury profits surged on the US-China trade deal hopes. The U.S. administration debt yields climbed as traders tracked the latest progress in the U.S.-China trade talks. The yield on the standard 10-Year Treasury note surged sharply to around 2.513%, whereas, the yield on the 30-Year Treasury bond jumped by 2.923%. Bond yields shifted contrarily to prices.