President Donald Trump is sending positive vibes about getting a trade deal with China.
He tweeted Friday as talks resumed for a second day in Washington that “good things are happening” in the meetings—and that if the world’s two biggest economies did reach an agreement, he would be able to sign it without a lengthy congressional approval process.
A few minutes earlier Trump tweeted his bullish outlook on the talks, lifting stocks. Banks and chipmakers led the S&P 500 Index higher, putting the gauge within about 2% of an all-time high. Yields on 10-year Treasuries rose. Equities in Asia and Europe were also higher on expectations for a tariff ceasefire.
As day two of U.S.-China trade talks got under way, Senate Minority Leader Chuck Schumer criticized any deal that would include breaks for Huawei Technologies Co., the Chinese telecom giant that’s raised national-security concerns in Washington.
“A China mini deal? It must not include concessions on Huawei,” he tweeted just before the Chinese delegation arrived at the U.S. Trade Representative’s offices. “That’s what China wants most, and it would show tremendous weakness.”
Vice Premier Liu He and his team arrived around 9 a.m. and was greeted by USTR Robert Lighthizer, who’s celebrating his 72nd birthday on Friday, and Treasury Secretary Steven Mnuchin. Liu has a scheduled meeting with Trump at the White House at 2:45 p.m.
The talks led by Liu and Lighthizer are the first senior-level in-person talks since late July to try and end an 18-month trade war that is taking a toll on the global economy and U.S. manufacturing.
Other key developments:
- Foreign firms have a clear road map for full ownership of financial services companies in China. Overseas institutions can apply for total control of onshore ventures starting in 2020, the China Securities Regulatory Commission said Friday
- Former Trump adviser Steve Bannon told CNBC he “wouldn’t be surprised if they saw some interim deal.”
- China plans to ask the U.S. to lift sanctions on its biggest shipping company at this week’s talks.
- Soybean prices are higher this week partly on expectations China will purchase more from the U.S.
Trump on Thursday said the first day of high-level trade negotiations between the U.S. and China on Thursday went “very well” and that he plans to meet with the top Chinese negotiator Friday.
“We just completed a negotiation with China, we’re doing very well, we’re having another one tomorrow. I’m meeting with the vice premier over at the White House, and I think it’s going really well,” Trump said Thursday. “We’re going to see them tomorrow, right here, and it’s going very, very well.”
The U.S. and China have both appeared willing to work toward a partial deal, and leave the more controversial issues for later discussions. However, Trump repeated on Wednesday that he would prefer a complete agreement. The core U.S. demands would commit China to cracking down on the alleged theft of intellectual property and stop forcing U.S. companies to hand over their commercial secrets as a condition of doing business in China.
Without progress, the U.S. is due to increase tariffs on about $250 billion of Chinese imports to 30% from 25% on Oct. 15. More duties on $160 billion of Chinese imports are due Dec. 15.
