President Trump told the world in February that he and Chinese President Xi Jinping would soon have a “signing summit”. According to the South China Morning Post, a new trade deal may not be finalized until June of this year. A finalized U.S. / China trade deal could be delayed, according to a major Chinese newspaper.

White House Wants Guarantees from China at the Signing Summit

The Post cited anonymous sources, saying that “they [trade negotiators] will not be able to finalize an agreement by April.”

The newspaper reported that trade talks are moving ahead positively, but that there is a stumbling block in the form of White House demands for enforcement mechanisms. American negotiators want proof that China will be able to maintain its promise to end forced technology transfers and other anti-competitive practices.

Sources for the Post believe that the Signing Summit could be delayed until June or July, depending on how long it takes for both countries to reach an agreement on key issues. The source noted that while it is possible that an agreement could still be reached by April, it looks unlikely at this time.

Asian Investors Still Confident on Monday

Despite some uncertainty arising from this news, Asian stocks were still up on Monday. This is a good sign for American markets.

• The Nikkei in Japan grew +0.62%.
• The Honk Kong Hang Seng (HSI) grew +1.0%.
• The Shanghai Composite (SHCOMP) grew +2.47%
• The South Korean Kospi (SEU) grew +0.16%.
• The Australian ASX (XJO) grew +0.25%.

Asian investors may be showing signs of increased positivity due to some important news out of China on Friday. President Xi Jinping announced that China has now outlawed the practice of forced technology transfers. This is part of a wider improvement to investment laws. This move by China would have gone some way towards meeting U.S. demands on trade.

However, the issues of enforcement and accountability remain.

President Trump Has Remained Optimistic

The President said last week that “We’ll have news on China. Probably one way or the other, we’re going to know over the next three to four weeks.” Trump also said that China had so far been “very responsible and very reasonable.”

This indicates that there is ongoing good faith in the Signing Summit negotiations, something that investors can take confidence from this week and until a potential deal is signed.