Economics
Get Ready for Annual U.S.-China Trade Wars, Credit Suisse Says
- Brokerage sees trade relationship resembling pre-WTO days
- De-escalation to be positive for short-term sentiment
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Same time next year? Anyone breathing a sigh of relief on Monday may have to get used to featuring China-U.S. trade wars in their economic models.
While stocks in Hong Kong and U.S. equity futures jumped after the world’s two largest economies agreed to put trade tariffs on hold, analysts at Credit Suisse Group AG say the tit-for-tat confrontations will probably become a regular fixture for investors. They see a cycle of disputes and negotiations becoming an annual ritual that harks back to the 1990s, before China became a member of the World Trade Organization.