The US-Chin trade truce reached at the G-20 summit in Osaka will not lead to a permanent solution any time soon, with both sides likely to experience more pain in the interim, according to economists and investment strategists.
Key quotes (Source: South China Morning Post)
“We should be thinking of this as a calm in the middle of the storm here. Actually, the trade war is far from over, even with the ceasefire. There’s a lot of things to talk about going forward,” Ethan Harris, head of global economics at Bank of America Merrill Lynch, said.
“Any deal that is reached is likely to be a painful one – a situation in which neither party feels extremely happy. It’s unlikely to be a short term outcome. It is unlikely to be a one-and-done deal, rather there will be a protracted series of small victories, small step backs from where we are,” Kevin Anderson, head of investments for Asia-Pacific at State Street Global Advisors, said.
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