Why we could soon see peace break out in the trade wars

Both Donald Trump and Xi Jinping want to strike a deal in the US-China trade wars says John Redwood. But they both need to claim a victory.

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Trump and Xi both need to be seen as winners
(Image credit: © 2019 Bloomberg Finance LP)

The markets have two problems with Donald Trump's approach to the trade talks.First, is he is so unpredictable that it makes it very difficult for commentators and forecasters to come up with a well based vision of what the future holds. Secondly, there is a nagging worry that the US-China relationship is about so much more than trade, with important post-holders in the president's government seeing an opportunity to confront China on a broader front as he makes waves on trade.

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Sir John Redwood is a former MP and cabinet minister and is chief global strategist for Charles Stanley.