United States President Donald Trump and Chinese President Xi Jinping are going to meet on the sidelines of the upcoming G-20 summit in Japan. While President Trump has stated on several occasions that he will meet with Xi Jinping, there is still no official confirmation from China.
US-China Meeting at G-20 Summit: A Miracle or a Nightmare?
Currently, nobody is expecting any miracles from the meeting, if it would happen. When the US-China trade talks started on the right track in April, there were expectations that the two leaders could sign a trade agreement at the G20 summit. However, a month after the start of the plan, there appears to be no composite trade deal that Trump and Jinping might sign. A better scenario for markets might be another truce, as we saw after the last meeting between the two leaders, which took place last year.
It is well known that President Trump has moved away from talks that he does not consider to achieve the desired results. This year alone, Trump left his summit with Kim Jong-un in Vietnam and met Democrats on the financing of the border wall. So, the worst scenario for talks between the United States and China is that President Trump is moving away from the meeting. This might also spoil the meeting sentinment. We saw something similar at the G7 meeting last year, in the exchange of harsh words between the United States and Canada.
For now, markets still expect the proposed Trump and Xi Jinping meeting to help bridge the gap between the two countries on important trade aspects. However, surprises are not ruled out later this month. After a correction last month, we saw a rally in US stocks and the S & P 500 gained 3.5% so far this month. General Electric (GE) saw a 5.1% rise in June, up 36.5% YoY.