The Future of Trade between China and the West: What Investors Need to Know
As the trade relationship between China and the West continues to deteriorate, investors are left wondering about the implications for their portfolios. From the impact of the Trump administration’s policies to the current stance of the Biden administration, there are many factors at play.
According to Rabobank’s senior macro strategist Teeuwe Mevissen, Europe and some Western countries are treading carefully when it comes to engaging in a full-blown trade war with China. However, patience is wearing thin as China’s trading practices come under increasing scrutiny.
Until 2018, the trade relationship between China and the West was governed by a rules-based approach under the WTO framework. Now, experts predict further deterioration in this crucial economic partnership.
While the EU has been more cautious in its approach to trade with China compared to the US, recent developments suggest that this may be changing. The Biden administration has maintained many of the trade measures put in place by its predecessor, signaling a continued tough stance on China.
Investors should pay close attention to these developments as they could have significant implications for global markets and individual portfolios. Understanding the changing dynamics of trade between China and the West is crucial for making informed investment decisions in the current economic landscape.
Stay tuned for more updates on this evolving situation and its potential impact on financial markets.