US-China trade dispute likely to re-escalate after Mar 1, says Fitch

Tan KW

Publish date: Fri, 11 Jan 2019, 04:07 PM

SINGAPORE (Jan 11): Fitch Solutions Macro Research is suggesting a high likelihood that the US-China trade dispute will re-escalate after Mar 1, due to disagreements over a number of outstanding key concerns.

One such concern is a persistent lack of detail surrounding the planned increase in Chinese purchases of American goods and services, which have only been characterised as “substantial” – a term that Fitch notes has been similarly used in statements following presidents Trump and Xi’s dinner meeting at the G20 summit in Dec 2018.

Another issue is a gap between Washington and Beijing’s positions on structure issues that form the core of US key demands, such as China stopping state subsidies for its state-owned enterprises.

“Despite the public display of cordiality and positivity by both sides during and after the talks, we maintain our core view that there will likely not be a lasting resolution to the trade dispute after the end of the truce on March 1,” comments Fitch on the recent scheduled trade talks between US and China, which took place earlier this week over Jan 7-9, in a Friday note.

While the firm acknowledges the likelihood of a eventual deal being struck between the two countries, it believes the outcome will be based on “more shallow and short-term concerns” such as the increased Chinese imports of American goods.

“Key issues such as the protection of intellectual property and US accusations of Chinese corporate espionage will likely remain unaddressed. This means that a re-escalation of the trade dispute after March 1 due to disagreements on these outstanding key concerns still remains likely,” concludes Fitch.

Discussions

1 person likes this. Showing 4 of 4 comments

ks55

Anyone listen to President Xi numerous speeches on various auspicious occasions will know US won't succeed on their unreasonable demand.

Up to now China never admit theft of IP, and Donald Duck never prove US IP was stolen.

Making allegation is easy, to get conviction, Donald Duck must show evidence what is wrongful loss to which US company, and what is the wrongful gain by which Chinese company.

US companies are not idiots.
Some people steal your property, you make police report, or you sue them in civil case.
Qualcom sues Apple, so Apple cannot sell i-phone in China.

Tell the world WeChat did not steal from Whatsapp.
Tell the world Baidu did not steal from Google.
If they have stolen propriety rights, sue them............

2019-01-11 17:33

ks55

State subsidies internal affair. why Donald Duck so busybody?
Isn't it the Duck also subsidize US farmers to tune of tens of billion USD?

2019-01-11 17:36

ks55

Very likely no deal, and trade war will resume after 1 Mac.

So it is prudent to keep some cash for that possible outcome.......

2019-01-11 17:38

shortinvestor77

Agree.

2019-01-11 22:41

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