Market Review and Trends
Was the phase I trade deal a big deal?
By betterspider  •  January 19, 2020
You’ve read the headlines – the first phase of the US-China Trade pact has been signed between the two largest economies in the world after they first slapped tariffs on each other in July 2018.
Photo: MoreThanShipping
Was the phase I trade deal significant? I explore deeper.

What the phase I deal is

  • China to commit an additional US$200b purchase program from the US over the next two years (till Dec 2021)
  • Both countries affirm the importance of voluntary, market-based transfers of technology instead of forced transfers
  • Currency enforcement of the Chinese Yuan on market-based principles
  • China will allow US financial institutions to apply for asset management licenses
  • China shall eliminate foreign equity limits which will allow banks and insurers to gain more access to the Chinese market

Issues with the phase I deal

  • US$200b of imports is a really significantly difficult target to reach – to put things in perspective, China imported US$185b of US goods in 2017
...
Read the full article
By betterspider
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance