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3 Pros React To Latest Sino-American Trade Talks

3 Pros React To Latest Sino-American Trade Talks
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American trade officials are in Beijing for trade talks, and while no breakthrough is expected, the fact that talks are underway is a "sign of success," said NBC's Janis Mackey Frayer. A successful outcome would have Chinese officials agreeing to come to Washington, D.C. to continue talks ahead of the March 1 tariff deadline.

'Awkward' Timing

The "relatively low-level" talks taking place in China are taking care of some of the groundwork that needs to be handled before future talks involving more senior officials occur, State Street Global Markets' Dwyfor Evans said in a CNBC interview Monday. The timing of the talks is "awkward" ahead of the Chinese New Year celebration in February and the lead-up to the National Congress on March 1, he said.

"I'm finding it difficult to believe we are going to get some of outcome before March."

China Needs To 'Switch Course'

China needs to "switch course" in what it's willing to give up in talks with the U.S., Scott Kennedy of the Center for Strategic and International Studies told CNBC Monday. China needs to offer "quite constructive, serious, wide-ranging" reforms of industrial policy, including intellectual property rights, he said.

While China doesn't need to reach a final agreement this week, the country needs to "give clear signals that all of those things are on the table in a way they haven't before," Kennedy said. Any decision China makes needs to be consistent with reforms that will generate long-term economic growth at a time when its economy is showing signs of slowing down, he said. 

Chan: Years Of Issues To Come

President Donald Trump's dealmaking persona prompted trade deals with Canada and South Korea, and he's likely to accept any deal with China that "looks good to his electorate," Hector Chan of AXA Investment Managers Chorus told CNBC. The more likely outcome is for a finalized trade deal to be made between the two countries that doesn't tackle new issues that will arise over the coming years, he said. 

Related Links:

Trump Economic Advisor Says 'Heck Of A Lot Of US Companies' Have Trade War Earnings Risk

China's Tariff Moves Divide Opinions Of Policy-Watchers

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