12.10.2019
- The US and China last night completed ‘phase one’ of a bigger trade deal, requiring Chinese purchases of US agricultural goods, some intellectual-property and currency measures and access for US financial services in return for US refraining from next week’s planned tariff hike on USD250bn of Chinese goods.
- The two sides will now have to write down the trade deal over the next three to five weeks possibly followed by a signing ceremony at the APEC meeting 16-17 November. Chinese media, while noting progress, warned not to be ‘overly optimistic’ about the prospects for future negotiations.
- The completion of ‘phase one’ of the trade deal could likely boost market confidence further near-term as it removes some uncertainty, but it will not be a game changer for the global economy in our view.
