The trade tension between China and US keeps getting intense but the situation might undergo a brief hiatus in the coming months, however, it would remain unresolved until the conclusion of the 2020 US presidential elections, the Standard Chartered Private Bank said.
Steve Brice, the chief investment strategist of the said financial institution said and as cited over at CNBC, Washington's decision to put an end to this conflict with Beijing will primarily be influenced by politics, particularly that of the Trump administration.
It's clear that the POTUS will be seeking a second term for the US presidency at the 2020 elections and this, according to Brice, could play a huge part in easing out the economic tension.
As such, Trump will likely to step on the gas and head straight on to solve the problem with China which he'd better accomplish in the next six months before the actual day of selection.
This could be a win-win for both concerned parties as it will once again stimulate economic growth, not only domestically but globally as well.
The signs are clear: a majority of the Americans liked the way Trump handled the nation's economy. However, this is not enough to help push back his declining approval rating.
This could spell trouble for the incumbent head of state who might now be working on his re-election campaign.
An Opening for Re-Negotiations
As previously reported here at Business Times, Trump and China's President Xi Jinping are expected to meet at the sidelines of the upcoming G20 summit in Argentina next week.
Both leaders have expressed their enthusiasm on the possibility to once again meet. As Xi said, it is important for the two economies to strengthen its contact and establish a steady and healthy political and economic relation.
Beijing and Washington should also conduct regular consultations with regards to the current state of the China-US trade issue.
By doing so, both parties could work on a strategy that will ease out the international economic situation and settle them in an acceptable manner.
Xi has already voiced out his willingness to meet Trump in Buenos Aires as this is part of his government's efforts to improve bilateral trade cooperation with the Western powerhouse.
Despite this, economic and political experts are kind of pessimistic on the outcome of the summit which, according to them, will not necessarily bring in any major improvement to the swelling situation.
