While the United States failed to reach an agreement on a new China trade deal earlier this year, top officials in Washington still believe that an agreement is not far off. Rising tensions throughout 2018 wreaked havoc on the stock market. Investors have shown concern that tensions could flare up again, potentially erasing the gains that have been made in the stock market since January.

Investors looking for a bright side to the current stalemate can look to comments from Steven Mnuchin, the U.S. Treasury Secretary. In a recent interview, Mnuchin said that a deal is 90% done, and there is a clear pathway to signing.

Mnuchin Candid on China Trade Deal When Speaking with CNBC

The top trade official’s comments came from a recent interview with CNBC. He told the network that “We were about 90% of the way there and I think there’s a path to complete this. The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship.”

His comments echo previous statements made by the President and other trade officials. It is believed that both nations were close to signing a deal, before China trade deal pulled out of key agreements in the final hours of negotiation. It is speculated that these agreements related to China’s handling of intellectual property rights, and the subsidization of hi-tech industries.

President Trump will meet with Chinese President Xi Jinping on Saturday at the G-20 summit in Japan. If the meeting goes well, then markets will likely receive a boost of confidence. While trade issues are not likely to be resolved in the meeting, it could at least lead to improved negotiations.

A signed deal is critical to both the U.S. and China, as well as the rest of the world. Top economists believe that an escalating trade war would have a knock-on effect, potentially sending global markets into recession.

Trump Acutely Aware of How Politics Impact the Stock Market

The President is fond of using the stock market as a benchmark of his policy success. In a Tweet on Tuesday, he told his followers that the “Stock Market is heading for one of the best months (June) in the history of our Country. Thank you Mr. President!”

Trump will be eager to develop a better relationship with China, as a new trade deal was a key component of his campaign for office.

A new China trade deal would remove a significant economic headwind, which would help to ease concerns as America approaches the end of the current growth cycle.