Do you think that a US–Chinese trade war could trigger a recession? Could a trade war be good news for Europe and France?
DaltinAny escalation in trade tensions could edge the global economy closer to tipping point, which is in the interests of neither party. Indeed, US economic strength is one of President Trump’s main campaign points for the 2020 election. Similarly, President Xi Jinping does not want the Chinese economy to decelerate too sharply as this could jeopardise social stability.
The latest round of trade talks has demonstrated a desire on both sides to pursue negotiations and reach a phase-one deal, although uncertainty remains high. We believe that trade tensions are damaging to both Europe and France, as they act as a drag on global manufacturing.
The opinion expressed above is dated 20 November 2019, and liable to change.
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