CNBC’s Jim Cramer raised concerns that Chinese trade negotiators would try to demand more concessions from the U.S. that could derail ongoing trade talks.
“That’s what makes me a tad suspicious about all of this trade truce happy talk,” the “Mad Money” host said. “I think we’d better see some action soon, or we’ll have to become more circumspect about the negotiations.”
The Trump administration revealed over the weekend that U.S. companies could get authorization to do business with Chinese telcom giant Huawei in the near future. U.S. officials have given signs that the world’s largest economies could reach the first phase of a trade deal sometime this month.
In October, President Donald Trump said that the two countries had made progress in negotiations. The U.S. reportedly agreed to halt scheduled tariffs on Chinese imports from going into effect, while China was said to agree to buying a large amount of U.S. agriculture products.
Trump has said that phase one would accomplish 60% of a long-term trade deal with China, but China has given conflicting signals about the chances of landing a full deal.
Cramer raised concerns that the Chinese Communist Party, led by President Xi Jinping, could try to force the White House to make additional concessions before signing the phase one deal. He worries that the country would renege on its promises on ag buys and a crack down on fentanyl shipments.
“If China doesn’t give us some signs of good faith, I wouldn’t expect to see an end to, say, the Huawei blacklist,” Cramer said. “It’s just not going to happen, unless they show that they’re serious about making a deal.”
