A Chinese state-run newspaper claimed in an editorial published late Tuesday that the U.S. faces greater pressure to resolve its ongoing trade war with China because failed negotiations would likely have major consequences for stocks worldwide.
On Tuesday, the S&P 500 rose after U.S. President Donald Trump again indicated the world's two largest economies might have more time to find a way to avoid raising tariffs. The current deadline before increased tariffs kick in is March 1, and the Chinese delegation is in Washington, D.C. this week for trade negotiations.
"[Trump's] words further stoked the stock markets of the US, which reached the highest in two months and so increased pressure on the Trump administration to close the deal with China," the Global Times said in the editorial.
Trump has frequently cited the U.S. stock market's performance as a gauge of his success, although he has been quiet on the subject when shares are not performing well.
Citing unnamed analysts, the Global Times editorial added that if both sides can't reach an agreement and the Trump team "imposes more tariffs on Chinese products while China responds with fiercer countermeasures," then that would "be a catastrophic strike to global stock markets."