As the relationships amid countries move over the next couple of decades, the trade might remain a hot button topic, as per to one analyst. That forecast came as the U.S. and China persist to deal in a trade war that has churned global markets. In the last week, the U.S. President Donald Trump augmented tariffs on billions of dollars valued Chinese goods, and in return, China threatened to hit back. Those advancements—which followed conjecture that the top two economies globally had been close to signing a trade deal—sent shockwaves via global markets. As countries, counting China, accumulate more power on the universal stage, financiers must anticipate more trade arguments further, as per to James Sullivan, Chief for Asia ex-Japan Equity Research at J.P. Morgan.
Sullivan said to CNBC, “As we began to move toward a multi-polar world, I feel we have to distinguish that these trade discussions are not highs and lows. I think we have to understand as equity investors, particularly, this is now the recent normal.” He further added, “These trade conversations are now a part of the environment of international markets for the coming 10 to 20 Years as these nations and economies sort out their relative position in the world and how we rearrange the overall universal structure to account for the surge of China and for a multi-polar environment.”
On a similar note, recently, it was stated that Beijing has a host of alternatives to strike back against the new hike in the U.S. tariffs on Chinese goods, experts said. The recent round of trade discussions amid the U.S. and Chinese negotiators ended without a trade deal. Those compromises fell under the outline of Trump’s threat to double the tariff rate to 25% on Chinese goods of on $200 Billion.