Global financial markets are focused on the upcoming Trump-Xi meeting at the G20 summit in the hopes for some positive news on the trade war. However, so far, both sides look determined to stick to their demands, making us wonder if we would see any progress at all.

On the one hand, the US side insists that China should revisit the agreed terms it went back that led to the breakdown of talks, and pick up from there. Officially, the US still maintains that tariffs will not be off the table, but sources within the trade teams remain hopeful that the US puts off these tariffs as a goodwill gesture as both sides try to resolve their differences. Meanwhile, China would like both sides to be prepared to make compromises as they try to work towards a trade deal.

Even though the trade talks have resumed, the US has not yet called off the next round of tariffs threatened on over $300 billion worth of Chinese goods. China wants the tariffs to be lifted on its goods, while the US wants China to change its policies on IP protection, forced technology transfers and to open up its markets to allow more foreign players.