The US and China have agreed to high-level talks on Aug. 15 to assess Beijing's compliance with bilateral trade agreement signed early this year, according to the Wall Street Journal.
Reuters news adds that China's Ambassador to the United States Cui Tiankai says Beijing does not want to see escalation following mutual consulate closures.
Chinese Ambassador Cui: China is ready to negotiate with other countries for a peaceful solution to disputes in the South China sea.
Market implications
For financial markets, the new cold war may not have a big impact unless we see serious disruptions in terms of trade wars or material escalation in the conflicts around the South China Sea and Taiwan,
analysts at Danske `bank explained.
The survival of the phase one trade deal will be the most important factor in the short term. We see a 50-50 chance that Trump sticks to the deal.
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