SINGAPORE (July 1): US President Donald Trump and Chinese President Xi Jinping’s impending Osaka G20 meeting is one to watch, but market commentators are not expecting any significant breakthrough. At the very least, they would be happy that talks between the world’s two largest economies have not broken down.
“The meeting could help ease bilateral relations and move the current conflict in the direction of an eventual agreement,” says Tuan Huynh, chief investment officer for emerging markets at Deutsche Bank Wealth Management. Following the meeting on June 28 and 29, he expects the US and China to focus on specific issues such as protection of intellectual property rights and subsidies for China’s state-owned enterprises and agricultural industry.
Similarly, Esty Dwek, head of market strategy at Natixis Investment Managers, thinks the talks will proceed “nicely” but that no deal will be reached. She expects the US to put on hold the tariff hike from 10% to 25% on all imports from China while leaving the door open for talks to continue.