DBRS Morningstar Releases Commentary on U.S. – China Relations: Will De-escalation Last?

DBRS Inc. (DBRS Morningstar) released a commentary titled “U.S. – China Relations: Will De-escalation Last”.

After nearly 18 months of negotiations, the U.S. and China reached an agreement on ‘phase one’ of an interim trade deal on December 13, 2019. In addition to trade, the fact sheet released by the United States Trade Representative has chapters on intellectual property, technology transfer, agriculture, financial services, currency, and dispute resolution. Both countries agreed to halt additional tariff hikes that were scheduled for December 15. While the agreement avoids a near-term escalation of the U.S.-China trade dispute, the final text agreement between both countries is yet to be worked out.
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“While the Phase One deal is a step in the right direction, it does little to alleviate the broader tensions between the U.S. and China”, said Rohini Malkani, Senior Vice President, Global Sovereign Ratings. As mentioned in DBRS Morningstar’s previous updates, the underlying disagreements between the governments in the two countries go well beyond “fairness” in trade.

The commentary titled “U.S. – China Relations: Will De-escalation Last” is available at www.dbrs.com.

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