The tense trade relationship between China and the United States has dominated headlines this year, to the point where many investors have simply become desensitized to the developments. The latest news could change that, as it’s finally something positive, and could end up working well for the market.

Beijing announced this week that it would be sending an envoy to Washington in an attempt to resolve the current issues that are hindering trade between the two nations. China has also expressed concern that if action is not taken, the tensions could stifle worldwide economic growth.

Meetings to Take Place Later This Month

The envoy will arrive in Washington in late August. As with previous talks, the envoy will meet in private with top level trade officials from the United States government.

While the Commerce Ministry in China did not reveal any details when they announced the visit, they said in a statement that they would discuss “issues of mutual concern.”

This latest development comes at a time when both nations are preparing to impose a new round of tariffs on each other. From the United States, there will be tariffs placed on $200 billion worth of Chinese goods. From the Chinese side, up to $60 billion of U.S. goods will be targeted for tariffs. While China’s tariffs have a smaller monetary value, they are targeted at key U.S. industries that have the potential to cause more political disruption.

There has not been a meeting on trade between the two nations since U.S. Commerce Secretary Wilbur Ross visited Chinese officials in June of this year. Those talks ended without a settlement.

While analysts and investors should be optimistic of a positive result in this latest meeting, they should also be prepared for yet another stalemate. China has repeatedly said in statements that the country “reiterates its opposition to unilateralism and trade protectionism and does not accept any unilateral trade restrictions.”

China, Not a Guarantee of a Resolution

As previously reported, the trade deficit between China and the United States has actually increased in the last year, even with all of the tariffs that have been implemented in 2018. Tariffs began with sweeping aluminum and steel tariffs, before President Trump targeted China specifically. Tensions have continued to escalate, resulting in retaliatory tariffs, and general unease that has at times directly impacted the stock market.

While investors would be happy to see the end of this narrative with a positive result for the United States, it may still be some months before both countries can agree on terms that are mutually acceptable.