Optimism around US-China trade deal has often been misplaced – ING

The is some optimism around the resumption of the US-China trade talks this week but this has often in the past been misplaced, writes Robert Carnell – Chief Economist Head of Research Asia-Pacific at ING.

Key Quotes:

It looks as if we are back to considering the merits of a narrow trade deal today, as news stories break suggesting that China is not looking to make a broader trade deal along the lines it is reported the US is seeking.
 
I’m intrigued by this, as from a strategic point of view, I would have thought that the US would have the most to gain from a partial deal, not China.
 
A mutual olive branch from the US could be further delaying the implementation of the most recently announced tariffs.
 
Against this, the US has indicated that it wants a broad-based deal. Nothing is yet in the bag, and optimism on trade has proved time and again to be misplaced.