Trade talks get bumpier, but China’s dark-horse status will hold firm
The country’s economy continues to draw support from diversified trade flows and timely policy stimulus aimed at anchoring growth
ON MAY 12, both China and the United States took a major step forward by slashing tariffs. The US announced a sweeping cut from 145 per cent to 30 per cent on Chinese imports. The figure includes a 10 per cent “reciprocal” tariff and 20 per cent tied to fentanyl concerns.
China responded in kind, slashing duties on US goods from 125 per cent to 10 per cent, and temporarily halting non-tariff measures that were previously imposed on US entities under its unreliable-entity list and export-control list.
Talks between the US and China continued on May 22, with both sides signalling a willingness to continue dialogue. That was a positive gesture that markets welcomed. It seems that the risk of escalating tariffs is easing between the two major superpowers, and markets are starting to breathe a little easier.
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