As financial markets pin their hopes on a de-escalation in the U.S.-China trade war, some experts caution that meaningful progress in striking a deal between the world's two largest economies may still be some way off.

"Either tariffs are cut to more palatable levels or both sides put more exclusions on the table to make tariffs effectively less binding," Aidan Yao, Amundi's senior investment strategist for Asia, told the Reuters Global Markets Forum.

"For now, signs of these are sparse, presumably because the pain threshold has not been reached," Yao said, adding that the outlook for the Chinese economy still looks positive.
China recently said it was "evaluating" a U.S. proposal to resume trade talks over Washington's 145% tariffs. It has also created a list of U.S.-made products for exemption from its 125% retaliatory tariffs.