Breakthrough in US-China Trade War

Contributed by Anna Martyushev, 20 January, 2020

The first phase set to be signed anytime from now between the USA and China is expected to stabilize economies in the South East Asian markets according to speakers at a Beijing property conference. The trade war between these two economies has been blamed for the uncertainties undermining the region's currencies, which in turn has deterred investors from purchasing property fearing further depreciation.

A potential phase-one deal was announced in December between Beijing and Washington, and expectations are rife that the deal might be signed as early as this week. Developers have every reason to smile, as the trade deal will certainly stabilize economies in the southeast Asia, with their real estate markets set to reap big time from the deal.

If it goes through, several industries are set to benefit immensely, and that may include sectors beyond just the real estate. One of the fastest growing industries in Asia has been the gambling industry, with leading Betway88 Thailand taking a large chunk of the market. There are no parameters yet to project how some of these other industries will be affected, but there is a general feel-good factor even in the gambling sector, with brands such as Betway88 set to grow even further.

Speaking at a real estate summit in Beijing, the co-founder of Selo Group, the firm tasked with developing and managing real estate in Lombok Island in Indonesia said that there was optimism about the prospects of the deal.

"We all know in terms of the macro economy, the trade war with the US caused concern, and, with that, emerging-market currencies were a little bit vulnerable last year. With that looking to resolve itself at the end of last year, I think that puts Southeast Asia in a really good spot, because all of the currencies have started to stabilize. We are very positive that in Southeast Asia there is a really strong capital appreciation."

What the trade deal means

The US-China trade negotiations translate to a consensus agreement aimed at halting further increments in tariffs, and lowering some of the tariffs that are already in place. This is according to Wang Shouwen, the Vice-Minister of Commerce.

In a night conference held in Beijing, Shouwen said that the agreement was inclusive of a variety of issues, including technology transfer, intellectual property protection, and the general expansion of trade.

Similar sediments were shared by the Office of the United States Trade Representative which confirmed the deal had been reached.

"The United States and China have reached an historic and enforceable agreement on a phase one trade deal that requires structural reforms and other changes to China's economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange."

The next few days should witness more detailed translations that will be made public once arrangements for signing the agreement are reached. Larry Kudlow, who is President Trump's chief economic advisor said that the process would be complete in a few weeks' time, and that the final deal would be signed by US and China trade representatives, Robert Lighthizer for the US, and Chinese Vice Premier Liu He.

Overall, the deal is set to help in the expansion of economic cooperation between the two economic powerhouses, and effectively manage the growing trade disputes.

Tags: business | United States | China | trade disputes | trade |



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