President Trump approves a phase one trade agreement with China.

Joseph Corr

2020-01-01 13:39:00 Wed ET

President Trump approves a phase one trade agreement with China. This approval averts the introduction of new tariffs on Chinese imports. In return, China seeks to purchase $40 billion to $50 billion U.S. agribusiness exports to better balance the current Sino-American terms of trade. The Trump administration expects to phase out gradual tariff reductions for Chinese imports.

Meanwhile, the Trump administration reduces tariffs on $120 billion to $160 billion Chinese imports from 15% to 7.5%, but the separate 25% levies would remain on $250 billion Chinese imports. On the bright side, the current trade accord proves to be mutually beneficial to China and America, so the key U.S. and Chinese stock market indices surge in response to this great deal. The greenback depreciates a bit against a basket of U.S. fair-trade partners in response to the Sino-U.S. bilateral phase-one trade deal.

On the dark side, Chinese 5G technology now crystallizes as a clear challenger to the U.S. business model. A bifurcation of global supply chains has thus gone from a new niche to a mainstream consensus view. It is hence important for the Trump administration to strike a delicate balance between fair trade details and high-tech advances.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

The U.S. further derisks and decouples from China.

Peter Prince

2023-05-31 03:15:40 Wednesday ET

The U.S. further derisks and decouples from China.

The U.S. further derisks and decouples from China.   Why does the U.S. seek to further economically decouple from China? In recent times, th

+See More

Business titans often step away from their urgent work, slow down, and invest in self-enrichment.

Laura Hermes

2017-12-23 10:40:00 Saturday ET

Business titans often step away from their urgent work, slow down, and invest in self-enrichment.

Despite having way more responsibility than anyone else, top business titans such as Warren Buffett, Charlie Munger, and Oprah Winfrey often step away from

+See More

Macro economic innovations and asset alphas show significant mutual causation.

Olivia London

2023-12-03 11:33:00 Sunday ET

Macro economic innovations and asset alphas show significant mutual causation.

Macro innovations and asset alphas show significant mutual causation. April 2023   This brief article draws from the recent research publicati

+See More

The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley.

Jonah Whanau

2020-04-03 09:28:00 Friday ET

The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley.

The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley. Michael Malone (2014)

+See More

Addendum on empirical tests of multi-factor models for asset return prediction

Rose Prince

2022-03-05 09:27:00 Saturday ET

Addendum on empirical tests of multi-factor models for asset return prediction

Addendum on empirical tests of multi-factor models for asset return prediction Fama and French (2015) propose an empirical five-factor asset pricing mode

+See More

CEO overconfidence and corporate performance

Laura Hermes

2022-11-05 11:32:00 Saturday ET

CEO overconfidence and corporate performance

CEO overconfidence and corporate performance Malmendier and Tate (JFE 2008, JF 2005) argue that overconfident CEOs are more likely to initiate mergers an

+See More