Much of the buzz in offshore stock markets originated from media reports that some of the top representatives from the United States and China will sit down next week for face-to-face discussion on trade issues.
However, U.S. Treasury Secretary Steve Mnuchin warns that "there are a lot of issues" to be ironed out.
Mnuchin expressed optimism Wednesday about next week’s trade talks with China as the administration pushes looks to resolve a critical geopolitical issue.
Mnuchin told reporters he and Trade Representative Robert Lighthizer are leading a team that will head to Shanghai on Monday for a two-day meeting starting Tuesday.
U.S. companies are feeling the pressure of tariffs that have come in a tit-for-tat battle between the two countries. The White House has instituted duties on $250 billion worth of Chinese goods and has threatened to hit the remaining $300 billion or so of remaining imports if an agreement is not reached. China has issued retaliatory tariffs.
Mnuchin noted the symbolism of the two sides meeting in Shanghai — the Shanghai Communique of 1972 was considered an important step in normalizing relations between the U.S. and China.
