China-US could sign trade deal 'by end of March'

US President Donald Trump and Chinese counterpart Xi Jinping could sign a final trade deal by the end of the month, according to reports.

Both leaders could meet later this month on 27 March to end the trade war once and for all as both sides are at the final stages of negotiations, sources close to the negotiations have told the Wall Street Journal and Bloomberg.

The potential deal would involve lowering Chinese tariffs on US products if the Trump administration reduces the giant sanctions against China.

Chinese officials have made it clear that removing levies on $200bn worth of Chinese goods quickly was necessary to finalise any deal, Bloomberg was told. One of the remaining sticking points is whether the tariffs would be lifted immediately or over a period of time.

Negotiators are still going through another key issue, the Chinese plans for the creation of a state-owned global technology that competitors in Washington, Europe and other trading partners claim violates the freedom to operate in Beijing’s market.

Neil Wilson, chief market analyst at Markets.com, said: "European equities got off to a positive start to the week as US-China trade optimism had the necessary effect on risk sentiment, taking their cue from a solid Asian session and the positive close on Wall Street on Friday.

"But with all this positivity comes the risk that the market is buying on this rumour mill and is becoming more exposed should the good news not materialise. March could well come in like a lion and go out like a lamb.

"It’s been a strong start so far, and usually the Mar-Apr period is a good one for stocks. But the rapid ramp up in the market over the first two months of the year, there is the prospect of a fallout."

An end to the US-China trade war, even if only temporary, would be positive for China in its attempts to counter a slowdown in its economy.