United States President Donald Trump said trade negotiators are keen to start the discussion of China phase 2 deals as soon as phase 1 deal is signed. However, the outcome of phase 2 discussions may be finalized after the US 2020 elections of which he is running for re-election.
The US 2020 Elections will be held on November 3, 2020.
Trump said his administration might have more leverage after his reelection bid in November.
"I think I might want to wait to finish 'till after the election because by doing that, I think we can actually make a little bit better deal, maybe a lot better deal," the president said in his speech at the White House.
Trump's statement came as Beijing confirmed that its commerce ministry Vice Premier Liu He will fly to Washington next week to sign the phase one China-US trade deal on January 15. Details of the contract remained tight under wraps but initial reports said it consists of agreements on reducing imposed tariffs and promise from China to buy more American agricultural goods. The contract also includes revisions to intellectual property agreement already in effect.
Specifically, China promised to buy a minimum of $200 billion of US farm produce over the next two years. That amount is a big jump considering China used to buy far exports of only $26 billion back in 2012.
A September poll revealed that two-thirds of North American business leaders believed Trump would win reelection. CNBC surveyed chief financial officers of different big companies at the time. They are members of the CNBC Global CFO Council, which represents the world's largest and wealthiest companies. The council managed more than $5 trillion in the global market.
Trump's lead continues up to this present even with his impeachment trial that may happen anytime. Political analysts are also divided whether his latest move against Iran did well or bad to his chances of winning another term. Trump faces impeachment over the alleged abuse of power and obstruction of Congress.
At the same time, a January 2020 poll of Iowa and New Hampshire found that Sen. Bernie Sanders, former Vice President Joe Biden, Sen. Elizabeth Warren, and former South Bend Mayor Pete Buttigieg all have inched closer to winning. Both states will nominate on February 3.
Meanwhile, economists at the World Bank said they expect a worldwide economic expansion of between 1% and 2.5% this year as global markets recover from the rampage of the China-US trade war that went on for almost two years. Although that percentage still falls below the average economic expansion rate of 3%, that's a strong start for the year given that unpredictability and issues still lurk in corners.
