FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
93,844,312Confirmed
2,009,066Deaths
67,026,406Recovered
Fetching Location Data…
Advertisement
Advertisement
Kenny Fisher
USA and China. Usa flag and china flag

Investors are hopeful that the U.S. and China will continue to improve trade relations in 2020. After a bitter trade war that has lasted two-and-a-half years, the sides have wrapped up a limited trade agreement, known as ‘Phase 1’. The trade agreement is limited in scope, but is an important first step in reducing the trade war – the U.S. has suspended tariffs that were set to take effect in December.

Despite progress on the trade front, relations between the U.S. and China remain strained. A key irritant has been the pro-democracy demonstrations in Hong Kong. Protestors claim that China has eroded democratic rule in Hong Kong, and this has not gone unnoticed in Taiwan, which holds a presidential election on January 11th. President Tsai Ing-wen, who is seeking re-election, has rejected the “one country, two systems” formula for Taiwan, saying that the arrangement had failed in Hong Kong. China claims that Taiwan is part of the mainland, and has warned Tsai not to take any steps towards formal independence.

Tsai has benefited from a strong domestic economy. The country’s GDP grew by 2.9% in the third quarter, which made it the fastest-growing economy among the “Asian Tiger” nations, which include Hong Kong, Singapore and South Korea. Taiwan has been the big winner from the U.S-China trade war, and the slowdown in China has led to a rise in foreign investment in Taiwan, which was up 9.4% in the first three quarters of 2019.

Washington will be delighted if the pro-U.S. Tsai wins re-election, but such a scenario will ruffle feathers in Beijing and could complicate relations between the U.S. and China, at a time that the two largest economies in the world are trying to reduce trade tensions.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US