This file photo taken May 14, 2019 shows the US and Chinese flags displayed outside a hotel in Beijing. — AFP pic
NEW YORK, Dec 17 — The “phase one” trade deal between the United States and China has eased trade tensions but renewed escalation remains a significant risk, Fitch Ratings agency said today.
Tensions between Washington and Beijing, particularly in fields such as technology, will pose a major obstacle to full resolution of the trade war, Fitch said.
The rating agency said it now expects China’s economy to grow by close to 6% in 2020, compared with its earlier forecast of 5.7%, following the initial trade deal.
China's economic growth had cooled to a near 30-year low of 6% in the third quarter as the bruising trade war hit factory production.
The United States and China last week cooled their trade tussle by announcing a preliminary trade deal that reduced some US tariffs on Chinese goods in exchange for Chinese purchases of American farm products and other goods. — Reuters