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WSJ: US-China Trade Talks Hit Snag Over Farm Purchases

WSJ: US-China Trade Talks Hit Snag Over Farm Purchases

By    |   Wednesday, 13 November 2019 02:04 PM

U.S.-China trade negotiations have 'hit a snag' over farm purchases, with China not wanting a deal that looks one-sided in the favor of the United States, the Wall Street Journal reported Wednesday, citing people familiar with the matter.

Beijing is showing resistance over U.S. demands for more tech transfer restrictions and a strong enforcement mechanism for the deal, according to the WSJ, citing a person familiar with the talks.

“We can always stop the purchases if things get worse again,” a Chinese official was quoted as having said in the report.

The S&P 500 and Nasdaq stock indexes slipped on Wednesday on fresh uncertainty over U.S.-China trade relations.

Stocks pulled back in afternoon trading after the Journal report about the snag over farm purchases, the latest development in a dispute between the two countries that has convulsed markets for more than a year.

The three indexes had all been up earlier in the session, with the Dow hitting a record high, before the Journal report. 

“A couple of weeks ago, it looked like that phase one deal looked all but certain. I think the market started to price in a really positive outcome on the trade side,” said Jeff Mills, chief investment officer at Bryn Mawr Trust. “Although I do think that progress is moving in a positive direction, I think it would be foolish for us to assume that we’re going to move completely in a positive direction in trade without any type of intermittent setbacks.”

The prospect of a deal between the world’s two biggest economies has become key to sustaining a rally that drove American stocks to records, as it appears the Fed will be on the sidelines for a long time. The U.S. and China have yet to announce a new location or time to seal the agreement after an international gathering in Chile was canceled, and it’s unclear whether Trump’s renewed threats will move things forward.

This report uses material from the AP, Bloomberg and Reuters.

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Trade talks between the U.S. and China have hit a snag over farm purchases, creating another obstacle as Beijing and Washington try to lock down the limited trade deal President Trump outlined last month.
china, trade, talks, farm, wsj
Wednesday, 13 November 2019 02:04 PM
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