Temporary Ceasefire in US-China Trade War

    Chinese Vice Premier Liu He spoke by phone with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday, Beijing time. Both parties agreed to maintain communication and coordination.

Both sides agreed to make good progress in establishing the government infrastructure necessary to make this agreement success," the USTR said in an email after the call. "Despite the current global health emergency, both countries are fully expected to fulfill their obligations in the agreement"

 

    The outbreak of the pandemic shortly after the trade agreement sign in this January has caused severe damage to the Chinese and American economies and disrupted global supply chains. This is the first official phone call between Liu He and Lighthizer after the signing of the agreement. S&P 500 futures hit session highs after the call was reported. Japanese stocks rose about 1.5 percent, while Hong Kong, Shanghai, Seoul, and Sydney were also up. The CNY rose slightly.

Cooperation will benefit both, and fighting will hurt both. Although the international situation has changed a lot today due to the impact of the pandemic, this revelation is still the golden rule.