As you may know, the United States and China have been in a bit of a trade war thanks to the United States President Donald Trump and Chinese President Xi Jinping. The two are looking to meet next week to talk about regulations and changes. However, one analyst, Larry Kudlow, says we shouldn’t hope for much.
Kudlow says not to expect anything huge
Speaking on “Squawk on the Street” on CNBC, Kudlow, the director of the National Economic Council, says that he “wouldn’t expect any grand deal.” Kudlow continues, saying that while speaking to his “negotiators,” he believe’s that “they’re going to reset the stage and hopefully go back to where the talks left off last May.” Of course, the expert is referencing the end of communication between China and the United States in which the latter increases tariffs on billions worth of imports from the former. China then retaliated, which is unfortunate considering that talks “were doing well then” according to Kudlow.
That said, this Monday, a United States trade delegation will fly to China this Monday to continue discussions. This news comes to us shortly after learning that both Presidents agreed to continue talks again at G-20 last month. As of now, the director says IP theft and technology transfers are the most important discussions to have.
With Kudlow’s comments, the Dow Jones Industrial Average is day trading “just above the flatline” reports the publication.
On top of this Kudlow spoke positively about the United States economy after recent reports. According to him, the economy under Trump grew 2.1% last quarter, which is higher than predicted. The analyst credited this upward shift to the consumer, calling them the heroes of the economy, having contributed to “explosive economic growth.” That and Kudlow also called this growth “almost a miracle” considering the Federal Reserve raising rates last year.