EDITOR'S NOTE

Investors are awaiting any clues for a trade war resolution ahead of a meeting between President Donald Trump and Chinese President Xi Jinping Saturday. 

One key issue that will be discussed at this week’s G-20 summit in Japan is getting a “balanced” deal, CNBC’s Kayla Tausche reports. But that’s looking like an increasingly difficult task. China believes any new agreement will need to be evenhanded, while U.S. Trade Representative Robert Lighthizer told his Chinese counterparts that balance won’t happen, according to Tausche, citing a person with knowledge of the White House position.

In the meantime, certain states are getting hit harder than others. California, for example, exported more than 15% of its total goods to China in the beginning of this year. Texas’ exports to China were around 10%. 

The world’s two largest economies have been locked in a stalemate on trade for more than a year, resulting in hundreds of billions of dollars’ worth of tariffs. An agreement at the G-20 summit would avert the next round of an additional $300 billion worth of Chinese imports. 

Morgan Stanley CEO James Gorman is among the major U.S. executives sounding an alarm on any more escalation. In an interview with CNBC’s Wilfred Frost Thursday, Gorman said a trade war “will have a devastating effect to the global economy.” Still, Gorman said that doesn’t mean there can’t be changes to the way these agreements are being written.

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