More good news from Beijing on Thursday, with China's Commerce Ministry, saying talks between the US and China have ended on a high note. The ministry said in a statement that the round table, which ran for three days, was extensive and laid the foundation of resolving both countries' trade concerns.
Asian markets though didn't feel the sugar rush of Beijing's positive words. Shares cooled around the region as markets appeared to wait for some actual detail on what was agreed between the two sides. That's unlike Wednesday's trading when Asian markets hit nearly four week highs after members of the US delegation said talks had gone well.
This week's talks were the first between the two sides since President Trump and Xi agreed a 90-day trade truce in December. But as right as Michael Martina explains, there is still big problems underneath the good news.>> We heard some positive noises coming out of some of the US officials as they were going to and from meetings here in Beijing.
That somewhat makes sense because the officials that were making those comments were from agricultural or energy departments. And since beginning of this week, the Chinese side has resumed purchase of soybeans, big spending by the Chinese on commodities and other goods. That will send a positive signal, but it's unclear if it will go far enough to satisfy the United States.
Particularly if the Chinese don't remedy any of the concerns that the United States has over their industrial policy practices.>> And with time ticking down to the deadline set by Trump and Xi, and recent data showing a rapid slowing of China's economy, the pressure to find the solution is on.
>> What happens next is not exactly clear, neither side said that they had arranged for future talks. But it would be likely that Chinese delegation would in the near future potentially go to the United States continue talks. And the two sides will try to work out an agreement.
If that doesn't happen by March 2nd, then in theory, the next phase of US tariffs would go into effect.>> And that would mean another big tariff bump from 10% to 25 on $200 billion of Chinese imports.