US: Trade deal with China soon? – Danske Bank

Over the weekend, US President Donald Trump cancelled a trip by his Secretary of State Mike Pompeo to North Korea, which was planned for Friday as Trump cited lack of progress with North Korea and partly blamed China for easing pressure on Pyongyang due to the US-China trade war, notes the research team at Danske Bank.

Key Quotes

“Indirectly, Trump said in a tweet that he expected a trade deal with China soon, stating, ' Secretary Pompeo looks forward to going to North Korea in the near future, most likely after our Trading relationship with China is resolved'.”

“China reacted with surprise to the statement and a China Daily Opinion (state media) said that considering the lack of progress in US-China trade talks, that could be quite a while. China also strongly opposed the accusation it should be the reason for slowing progress, highlighting its own interest in denuclearisation in North Kora.”