*** Light risk-off flows on the back of a.....>

CHINA: *** Light risk-off flows on the back of a Global Times op-ed which notes

that "The previous 10 rounds of China-US trade talks have brought remarkable

progress, but contests become more intense at the end of the race. It remains

unknown if US side's attitude suggests the US intends to give up negotiations or

whether it seeks to maximize US interests at the last minute. What matters most

now for China is calm. The Chinese public wants an agreement, but meanwhile is

well prepared for other potential outcomes, including a temporary breakdown in

talks. It is certain that the Chinese society's expectation of a quick deal is

not as high as that of American society. Even if talks fail, the impact on China

will be controllable. Washington also desires an agreement, as damage brought

about by the trade war is two way. Upgrading and maintaining a long-term trade

war is by no means an option for which Washington hopes." It goes on "Even if

the negotiations break down and Washington comprehensively raises tariffs, that

does not mean the door to talks is closed. US' attitude just reveals that

Washington is anxious for an early agreement. At such a time, China needs to

keep calm."