G-20 speculation about U.S.-China deal grows

According to the WSJ:

• "The U.S. and China ... are exploring a trade deal in which Washington would hold off on further tariffs through the spring in exchange for new talks looking at big changes in Chinese economic policy..."
• "New talks would focus on what both sides are calling trade 'architecture,' a broad term that could encompass many issues the U.S. has wanted Beijing to address, including intellectual property protection, coerced technology transfer, subsidies to state-owned enterprises, and even non-trade issues such as cyberespionage."

Bloomberg reported that:

• "Those discussions... have centered on the possibility of a truce in which the U.S. would delay ramping up tariffs on China in exchange for Chinese concessions."
• "The two leaders would also agree on a 'framework' for further talks, U.S. officials such as Commerce Secretary Wilbur Ross have said publicly.
• "The two sides have also been eyeing a possible mid-December trip to Washington by Liu He, Xi’s top economic adviser, according to two people familiar with the discussions. But whether that visit actually takes place would depend on a positive outcome in Buenos Aires."

The big picture: A tariff ceasefire in exchange for some big PRC purchases of U.S. goods and a framework for months of talks would probably make the financial markets and Beijing quite happy.

The bottom line: But all of the reports in the run-up to the dinner are really just speculation at this point. It will come down how Trump and Xi are feeling during the meeting.

Go deeper:

• Trump-Xi dinner puts billions of dollars on the table
• How Trump and Xi Drove Their Countries to the Brink of a Trade War
• At Stake When Xi and Trump Meet: The Possibility of a New Cold War