US President Donald Trump announced on Monday that he was confident that a trade deal can be reached with China. The president explained that China has made a number of positive gestures, which indicated their interest in finally sitting down at the negotiating table to discuss terms.
Trump's announcement was a welcomed one and immediately calmed global markets, which have so far been pummeled by the slew of tariffs dished out by both nations. The US president's statement was made after his visit to the G7 summit of world leaders in France.
Trump stated that China was ready to reach a deal due to increased economic pressures and the massive losses being experienced by Chinese firms in the past months. China's vice premier, Liu He, also made a statement on Monday, revealing the country's intention of having "calm" negotiations with the United States to finally put an end to the trade dispute.
Liu's statement was taken by Trump as a clear positive sign that China was ready to negotiate. It was also asserted that China was the one that contacted the US first and that they were the ones that wanted to resume negotiations.
China has yet to confirm the Trump's assertion. Chinese Foreign Ministry officials have also not yet confirmed whether a phone call between the two sides had actually taken place. China's Commerce Ministry had also not yet released any statements regarding the alleged telephone conversation.
During a news conference with French President Emmanuel Macron, Trump mentioned that China really doesn't have any choice and that delaying the negotiations will only make it harder for the country. Macron briefly mentioned the issue during his statement, explaining that the trade dispute between two of the world's largest economies has only managed to damage global growth.
Following the release of the positive statements, global markets immediately rallied. The S&P 500 rallied by 1.10 percent, closing at 2,878.38. The US' dollar index also experienced a slight rise, while the Chinese Yuan was able to slightly recover after hitting an 11-year low in the offshore and onshore markets.
The United States has been making strides in the global economic stage in the past days with a number of positive steps towards establishing various trade deals.
The US had indicated that it was now close to reaching a trade agreement with Belgium, which could avert possible tariffs on vehicle imports from Europe. It was also revealed this week that American and Japanese negotiators had already agreed on the core content of a trade agreement, with aims of having the deal signed in September.
