Trade deal with US could boost China’s growth above 5.7% forecast, Fitch says
Trade deal with US could boost China’s growth above 5.7% forecast, Fitch says
The completion of a “phase one” trade deal with the United States could push China’s growth next year above current expectations, according to global credit ratings agency Fitch.
In September, Fitch projected that China’s growth would slow to 5.7 percent next year from the current 6.1 percent, if the US implemented all the tariffs it had announced for Chinese imports. However, a de-escalation of trade tensions could change growth trajectory.
“Recent progress towards reaching a US-China ‘phase one’ trade deal suggests the possible postponement or eventual removal of some existing tariffs, which could pose an upside risk to our growth outlook,” Fitch said.
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