The U.S.-China trade talks are coming to an ineffectual end.

The newest round of trade talks between the United States and China is getting close to a finish line in Beijing and the deadline of March 1, which should determine the fate of new import tariffs for Chinese goods worth 250 billion dollars, is approaching rapidly.

US Treasury Secretary Stephen Mnuchin and US Trade Representative Robert Lighthizer did not talk to journalists when they were going to the negotiations with Chinese colleagues including Chinese Vice-Prime Minister Liu Hae on Friday morning. They also have to meet the Chairman of the State Council of China Xi Jinping.

This week’s closed-door meeting was not productive for both sides in the scope of getting positions closer for structural reforms in China, on which the United States insists. That information came from three Chinese and US officials who asked about anonymity referring to the confidentiality of the negotiations process. According to those sources, Donald Trump and Xi Jinping could resolve those issues and arrange the agreement of the trade deal between the two largest world’s economies.

According to one of the sources, the United States did not soften the requirements for the Sino government to refuse the subsidizing of state companies and improve the corporative management, which is an extremely sensitive issue for Beijing.

Trump used to twit earlier this week that both sides could agree on postponing the deadline of new tariffs implementation if the sides would get closer to an agreement. The White House advisor for economic question Larry Kudlow stated last Thursday that the decision of prolonging the trade ceasefire hasn’t been made yet.

Nevertheless, the markets’ reaction was mainly positive for the perspective of a period for the deal arrangement. The main question is how long that period would be? A month, or till October? The main conclusion which could be made from the last week’s price action is that the longer the period would be, the more risk-on trading sentiment and volatility would happen in the financial markets, especially for the high-yield assets such as equities and risk currencies. On the other hand, if the US and China failed to make any significant steps in order to reach the deal, then global stock indices could crash again in the same way they did in October - November last year.

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