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Why the U.S. Trade Agreement Will Slow China’s Economy

Alicia García-Herrero | Senior Fellow for Bruegel and Chief Economist for Asia Pacific at Natixis
The response of the global financial markets to the trade agreement reached between the United States and China has been very positive, probably excessively so given the relatively limited size of the agreement reached.  The positive thing about the agreement is that it allows a truce — at least partially — in the strategic competition between China and the United States. This truce comes at a key moment for both President Donald Trump and President Xi Jinping for different reasons. China cutting tariffs in half on U.S. goods will serve President Trump as he aims to show that he has […]
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