China more appealing based on progress in trade negotiations

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Progress in trade talks, soft landing ongoing

The recent statements following the bilateral meetings between the US and China suggest that important progress has been made, and more details are emerging compared to the quiet early January round. However the uncertainty surrounding the talks remains high, and if no deal is reached before March 1st, $200bn of Chinese imports will experience tariff increases from 10% to 25%. At the core of the discussion, there are structural issues, such as technology transfers and intellectual property protection.