China reportedly canceled trade talks with the United States and is unlikely to move ahead until after November’s mid-term elections. This has started making investors jittery. The move follows the Trump administration’s announcement of imposing tariffs on $200 billion worth of Chinese goods that come to effect on Sep 24. Senior U.S. officials, led by Treasury Secretary Steven Mnuchin had earlier invited China for talks in an attempt to resolve trade disputes, which China had initially welcomed.
Given the increasing bitterness between the United States and China, defensive stocks have grabbed investors’ attention. These stocks offer slower but stable growth during periods of uncertainty. Since they also hold the promise of higher-than-average yields, investing in defensive stocks looks like a prudent option at this point.
China Reportedly Cancels Trade Talks
Reportedly, China has scrapped the planned trade talks with the United States and is unlikely to meet with the Trump administration until after November’s midterm elections. China thus won’t be sending its vice premier Lu Hi and a mid-level delegation to the United States this week.
The decision to call off the scheduled delegation comes after President Trump signaled that he is prepared for a short-term pain for the U.S. economy by escalating the trade war, as he sees this as long-term gain for China. The United States slapped 10% tariffs on $200 billion worth of Chinese goods last week, which come to effect on Sep 24. China retaliated by announcing 10% tariffs on $60 billion worth of U.S.-made products.
Senior officials, led by Treasury Secretary Steven Mnuchin had invited China for a fresh round of talks in an attempt to resolve the ongoing trade disputes. China initially welcomed the decision and was about to send a delegation to Washington this week. However, with China now declining to move ahead with talks, fears have once again ignited in the minds of investors.
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