Analysts hope US, China to reach trade deal soon

HOUSTON (Xinhua) – As expectation of solid United States (US) economy grows, experts and business insiders on Friday voiced hope that the US and China will reach a trade deal in the near future.

US economy in June performed slightly better than expected according to a report on Friday by the US Department of Labour.

Unemployment, however, rose mildly to 3.7 per cent, as more workers sought to enter the job market, increasing expectations of Washington’s solid economic stewardship when the presidential election year approaches.

“With respect to trade issues specifically, when returning to the negotiation table, more of a problem-solving approach needs to be applied than blaming one another for the current status of talks,” Professor Emeritus at Harvard Business School Peter D Johnston told Xinhua on Friday.

“There is absolutely room for a major and significant trade agreement if this approach is taken,” he said.

United States (US) President Trump with Chinese President Xi Jinping. – XINHUA

Looking to 2020, US President Donald Trump needs to be considered as a provider of economic prosperity for American voters, analysts said, adding that resolving trade issues with China may be the key.

“Trump probably desperately needs a truce by the end of the year. He’ll be full-time on the campaign trail starting in 2020, so he has to wrap this trade dispute soon,” Managing Director of US consulting firm All In Consulting Stanley Chao told Xinhua on Friday.

Because the Sino-US economic and trade frictions were triggered by the US imposition of additional tariffs on Chinese goods, all those tariffs must be lifted if the two countries could reach an agreement, the Chinese Ministry of Commerce said on Thursday.

There is a strong probability that the US “will at least temporary rescind the remaining tariffs,” said Chao.