Hopes rise for US-China trade deal after Mueller report

Fred Dufour | AFP | Getty Images

Chinese President Xi Jinping and U.S. President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on Nov. 9, 2017.

With the Russian investigations out of the way, there will be more incentives for the U.S. and China to come up with a trade deal now that it appears more likely for President Donald Trump to finish his term in office, analysts say.

Over the weekend, U.S. Attorney General William Barr said a nearly two-year investigation by special counsel Robert Mueller did not find enough evidence to make a case against Trump in obstructing justice, or running a campaign that coordinated with Russia’s efforts to influence the 2016 election.

“The Mueller report isn’t a game changer, but it should encourage China to keep up recent momentum in trying to finalize a deal with Trump,” Michael Hirson, Asia director at consulting firm Eurasia Group, said in an email to CNBC.

“China will still have redlines, and a deal is by no means guaranteed, but the fact that an impeachment looks less likely will be meaningful for Beijing’s calculus,” Hirson said. “One question now is whether Trump himself decides that he now has more leverage over Beijing and drives a harder line in negotiations.”