Did President Trump just win the trade war?
Stocks futures exploded higher Wednesday morning following a report in the Wall Street Journal claiming that China is planning to increase access to its domestic market. If accurate, this would constitute a major concession in the trade war and address one of the Trump Administration’s biggest complaints about the inherent unfairness of China’s “Made in China 2025” policy.
Of course, the Trump Administration will likely remain skeptical – at least at first – as WSJ reports that China likely won’t go as far as the US would like.
The revision is also likely to be treated with skepticism in the U.S. Officials in the Trump administration have called Made in China 2025 a threat to fair competition, saying it encourages state subsidies for domestic companies and forces technology transfer from foreign partners. Some U.S. officials are likely to see the changes as more cosmetic than real.
Stock futures climbed on the news as investors now have good reason to believe that Wednesday’s session won’t be a re-run of Tuesday.
And offshore yuan also moved higher as trade tensions eased.
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