US President, Donald Trump is said to threaten Beijing with new import restrictions. The White House backs to its normal political messages, and this even since before the 90-day break period for intensive US-China talks achieved during the G20 summit failed to begin. For reference, it was agreed that the parties take a pause in an interchange of import duties beginning from January 1 2019. Specifically, as the US leader stated in the social network, there will be a real deal or nothing.
It is worth mentioning that Donald Trump himself is sure that the countries may eventually come to terms and sign an agreement. In this situation, it is quite possible that Washington will do its best to press on China striving to achieve the contract terms benefiting American party. On the other hand, Beijing is likely to take sharp economic stimulus packages as well as boost demand and the real sector. The first signal for this scenario will be a softer monetary policy and weaker yuan. As a result, if it is observed, the talks will obviously be in a deadlock. With such development, China will be getting ready to face the largest challenges.
At present, Beijing actually is at a disadvantage, as they have either step back or held to the last. In fact, a 90-day period is obviously not enough to settle all the problems with tariffs and other terms.
Following the yuan strengthening these days to 6.83, the currency has trimmed gains by now. The US dollar-to-yuan rate generally stands at $6.8634, and the further upturn is quite possible in the near term.