Last Thursday, China's commerce ministry said Beijing and Washington agreed on a phased cancellation of their tariff hikes in efforts to pass the so-called 'Phase 1' trade deal.
The announcement sent New York stocks soaring to new highs stirring optimism over the global economy.
But just the next day, U.S. President Trump dismissed the ministry's claims, saying that China wants a rollback, which he hasn't agreed to anything.
Today we go in-depth on the U.S.-China trade talks that once again face a murky future with Dr. Yang Jun-sok, Professor of Economics at the Catholic University of Korea.
1. First market reactions. Despite Trump's dismissal, New York stocks rally continued last week, with S&P 500 and Nasdaq hitting a new record. Although Mr. Trump and the White House denied having any agreements on tariff removal, how do you see these market reactions?
2. We are seeing contradicting announcements on the rollback of tariffs from Beijing and Washington. How do you see this? Do you think there was an agreement but China made an announcement without prior consultation with the U.S.?
3. U.S. President Trump told reporters that a "complete rollback" was off the table. Judging from this, it appears the two sides are still struggling to reach a deal on the range of tariff removal. What's your prediction on the range?
4. What do we know so far about China's response to Trump's dismissal of the Chinese commerce ministry's announcement? And how do you expect Beijing to react?
5. Many expect the U.S. and China to sign the 'Phase 1' trade deal despite the recent development. And attention is already being drawn to where the deal would be signed. How is deciding the venue linked to gaining an upperhand in negotiations?
6. Now to the domestic economy. President Moon Jae-in has marked the start of the second half of his term today. How do you grade the report card of the Korean economy during the first half of his term?
7. The Blue House looks set to keep the current economic policies. What kind of policies or measures, do you think should be supplemented?
8. Finance Minister, Hong Nam-ki, marking the start of the Moon administration's second half today, said he aims to achieve economic growth of 2.3 percent next year. Do you think that goal is achievable?
9. Minister Hong Nam-ki also mentioned that the government's fiscal soundness is strong enough to push for a fiscal expansion next year. Do you agree?