Economist Sees Trump's China Trade Draft as ‘Mid-Term Posturing’

(Bloomberg) -- Markets rallied after U.S. President Donald Trump was said to have asked key officials to begin drafting potential terms for a trade deal with China, but at least one political observer is questioning the sincerity of Trump’s intentions.

George Magnus, an associate at the University of Oxford China Centre in U.K. and former chief economist at UBS, in a series of tweets said markets shouldn’t expect much result from Chinese President Xi Jinping and Trump’s planned meeting at the Group of 20 nations summit in Argentina at the end of this month. Here’s why:

The idea that trade peace is about to break out and tariffs canceled is "far-fetched" given the sheer volume of potential conflicts that remain unresolved, including U.S. charging a Chinese firm of conspiring to steal secrets from U.S. chipmaker Micron Technology Inc., Magnus added.

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