Search ForexCrunch

Following the latest confirmation on the likely US-China trade talks in early October, the South China Morning Post (SCMP) is out with a story, citing that the trade talks will not succeed, in the face of Hong Kong protests and spat over the US-Taiwan arms sales.

Key Quotes:

“Donald Trump can’t take a soft line on China with an upcoming presidential election, and his aggressive tactics will only meet a similar response from Beijing

This is especially so given the protests in Hong Kong and deteriorating cross-strait relations, and after the ‘currency manipulator’ charge angered Beijing’s moderates

Developments over the past few months in Beijing, Washington and Hong Kong should make it clear that the conflict is about much more than just trade, and a couple of days of face-to-face meetings cannot resolve much, if anything.

Washington’s decision to maximize pressure on Beijing will only meet more resistance, leaving the chances of reaching a deal close to nil.”

The article has little impact on the risk sentiment, as the renewed optimism around the trade talks continues to lift the investors’  mood.