Saturday, January 18, 2020

MORE: U.S. and China Trade Pact 2020.

NEWS (1). "Trump Gets His Trade Deal, China Gets the Win. China has suffered short-term pain from the trade war, but it stands to gain in the long term." Short-term pain? Nope. The Chinese never risked business without a strong safety net. While Trump busied himself a-front his foes homebased, Beijing upgraded its infrastructure in anticipation of influx of foreign/US investments when a trade pact is finally signed. Also, it firmed up economic agreements with Latin/South American giants Brazil, Argentina, and Bolivia--as well as in Sub-Saharan Africa. Then there's China's BRI gaining traction in eastern Europe via Ukraine. And of course China accelerated investments in Southeast Asia, as well. "Short-term pain," what? Beijing is still within its annual target of 6 to 6.5 GDP growth rate.



NEWS (2). "Trump Signs China Trade Deal, Putting Economic Conflict on Pause. An initial pact, cooling tensions in an election year, follows months of escalating tariffs and a trade war that seemed as if it would never end." What could be the best time to sign a trade pact? This: Two major humps in MidEast trade, al-Baghdadi and Soleimani, had been taken out. Tehran needs China to stay as its #1 trade partner; Chevron expands as border issues between Kuwait and SA were fixed; Saudi Arabia, Bahrain, UAE and Egypt shook hands with Qatar. War is bad for business. Aramco goes IPO. Fact: Global economic powers closely watch Washington's political drama due to obvious reasons. Sure, not just the Chinese. Consider oil-rich Arab sheikhs like the Saudis, Qataris and Emiratis. So there you go: Trade pact signed. 

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