February 27, 2019, Earlier this week President Donald Trump announced he might soon sign a deal with China. This deal with Chinese President Xi Jinping. To eliminate the trade war between the US and China. The trade war, blamed for slowing down economic growth and disrupts the markets.
Things have progressed between the relationship of the US and China. Trump is currently planning to delay the increase in tariffs from 10 to 25 percent in regards to $200 billion Chinese imports.
If the deal between the US and China proceed, other countries in relations with them will change. Thus, the current trade war has dramatically affected the Global economy.
US and China Deal
Last year, President Trump and Chinese President Xi declared a 90-day truce. This truce is to give time for the deal to form. The two sides expect to sign a memorandum of understanding (MOU). The MOU is for China to take action on issues regarding trade and economic policies. The US also wants China to make structural reforms.
Overall the deal believed to be a temporary truce between the two big countries. As for the US has many demands regarding China’s trade policies and other issues. Furthermore, China is known for not complying with the requests of other countries.
Global Economy 2019
The trade war between the US and China has dramatically affected economic growth. In relation to that, there is an expected reduction in Global economic growth as well. The decrease in global economic growth is going to continue until 2021. As the competition between the US and China remains intact. This competition risks a couple of countries that may be dragged down to their trade war. These two large countries are significant factors in the global economy. Any conflict regarding China and the US can affect the economy on a worldwide scale.
This deal between the US and China also affects US relations to other countries. The rising negative sentiments over Chinese network providers have grown. These countries are concerned with national security risks — these nations such as the UK, Canada, Australia, and Germany.