The first phase of the China-US trade war nears completion and experts claimed that the agricultural, technological, and automobiles sectors are the ones that would benefit from the trade deal.
Market watchers claimed that the easing tensions from both camps of the China-US trade war would greatly benefit three sectors in the market after the completion of "phase one" of the deal including one of the latter's largest trading partners.
According to The Motley Fool, Germany's Center for Automotive Research (CAR) perceived that the tariff war would cost the world's automotive industry an estimated loss of $770 billion in the next five years. It was also revealed that China's automotive industry may also fall nine percent this year as a result of the trade war.
However, some car companies such as Germany's BMW revealed that they have significantly gained after the US reduced tariff rates on exported cars to China from the US in 2018. Daimler AG who exported about 57,000 units also experienced gains after the tariff reduction. Additionally, Tesla also recently announced that they plan on building 500,000 more units and export them to China,
Similarly, the China-US trade war was also reported to benefit businesses engaged in the technology sector. The report indicated that US tech companies have yearned to enter the Chinese tech markets and that "phase one" of the deal would allow them to do so. It was earlier announced that China would open its financial markets to the rest of the world as a part of the deal and would result in better trade deals for players in the technological industry.
A previous report by CNBC News indicated that in 2017 alone, tech companies increased their revenue from sales to China. These include companies such as Micron Technology, Qualcomm, Nvidia, Skyworks Solutions, and Qorvo.
Additionally, it was also reported that the agricultural sector may also benefit from the completion of "phase one." US farmers exported $9.3 billion worth of goods to China in 2018 alone. The report also indicated that China is the fourth-largest customer of US agricultural businesses and yet, China's retaliatory tariffs on US import goods dropped by 50 percent in the same year.
Chief economist at the American Farm Bureau Federation John Newton claimed that products such as soybeans also had lesser tariff rates amounting to 80 percent lesser than previous years.
The report then highlighted that these industries significantly improved their sales and revenue due to reduced tariff rates, the same effect that the "phase one" deal would provide the world economy after its finalization.
