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

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.

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