Iis this the end of the trade war? On Wednesday, American President Donald Trump and China’s chief negotiator Liu He in Washington wanted to seal the tentative peace agreement of the almost two-year dispute – a plan that has given a clear verdict among financial market analysts. The new, old insider tip for investors, the message from many capital market outlooks for the current year, is: China.
China of all places. Many observers saw the second largest economy as depreciated last year after ever new punitive tariff announcements from Washington caused exports to its most important trading partner, America, to drop by a quarter in November alone in November compared to the same period last year. Car sales declined 7.4 percent to 20.7 million for the full year, shrinking the market for the second year instead of growing at a breathtaking pace each year as in the previous three decades. According to estimates by the International Monetary Fund, the growth of the economy as a whole, the exact extent of which the Beijing Statistics Office wants to announce on Friday, has been at 6.1 percent as low as it has not been in 30 years.