US-China trade talks
The US and China have held four rounds of trade talks since President Trump and President Xi Jinping agreed to a 90-day truce last year. President Trump extended the truce since the trade talks seemed to be making progress. However, President Trump hasn’t backed down from the structural changes that the US is seeking from China.
While China and the US have been discussing a trade deal for a little less than a year, there have been differences between the two sides. The differences have been visible in their statements. However, we’ve seen some convergence between the US and China’s statements this year. In February, China said that the two sides “had in-depth discussion on topics of mutual concerns including technology transfer, intellectual property rights protection, non-tariff barriers, the service industry, agriculture, trade balance and implementation mechanism.”
The statement closely resembles the United States’ wish list from China. However, according to Bloomberg, citing unnamed US officials, “China has changed its position on intellectual property rights.” Bloomberg said, “Beijing has also stepped back from its initial promises over data protection of pharmaceuticals, didn’t offer details on plans to improve patent linkages, and refused to give ground on data-service issues.”
According to the Wall Street Journal, the US and China (BIDU) (TCEHY) are set to resume trade talks next week. Looking at the markets, while broader markets are slightly negative with the S&P 500 (SPY) down 0.36% as of 11:40 AM EST on March 20, the FAANG pack is broadly positive. Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG) are trading with gains of 1.3%, 1.0%, 1.3%, and 0.87%, respectively. However, Apple (AAPL) is trading slightly down.
Next, we’ll discuss the US-China trade talks and Brexit.