US-China Trade War Timeline: A New Hope? September 29, 2020

US-China Trade War Timeline: A New Hope?

This article is part of the US election series brought to you by POEMS. #USElection2020

What the report is about:

  • Timeline of US-China trade developments from July 2019 to August 2020
  • 2020 US-China outlook
  • How to gain exposure to US and China markets

Phase 1 of the US-China trade deal was signed under the old normal, when additional tariffs could be absorbed by both sides. Since then, Covid-19 has turned the world topsy-turvy and overshadowed everything else. US-China relations have also deteriorated to below pre-trade-deal levels.

With US presidential elections round the corner, President Trump will likely ratchet up the heat on China to widen his appeal with his brand of populism. A Biden win, however, may well alter the course of relations. While the world watches in anticipation, check out our latest summary of trade developments from 2019 to 2020. Our article on trade developments from January 2018 to June 2019 can be found here.


2019 – silver lining at the end of the year

US-China Trade War Timeline: A New Hope?


2020 – a new hope?

US-China Trade War Timeline: A New Hope?


US-China outlook

The coming elections could be a crux for trade relations. If President Trump serves a second term, China is likely to face additional pressure, especially in the tech space. If Biden takes over, he would face the challenge of having to differentiate his China policy from Trump’s. Possible moves include getting rid of Trump’s policies to show goodwill, since the Democrats have long stood for stronger US-China relations. With further progress on trade talks unlikely due to the Covid situation, we can only wait and see.


What you can do

Investors can gain exposure to the upside and downside of markets, by hedging their positions with a wide range of World Indices Contracts For Differences (CFDs) which allows you to track and trade the underlying Index. These include the Wall Street Index CFD, China A50 Index CFD, US Tech 100 Index CFD and US SP 500 Index CFD. Alternatively, there is a whole range of equity CFDs under US Equity CFDs and China Equity CFDs. Speak to your Phillip Capital consultant today for details or drop us an email at cfd@phillip.com.sg.

Gain exposure to US & China markets with our new USD/CNH FX CFD pair!

US-China Trade War Timeline: A New Hope?

Another way to gain exposure to both the US and China markets is via our recently launched USD/CNH FX CFD pair.

Forex CFDs or FX CFDs, allow you to participate in the price movements of an underlying forex (FX) pair. It is the exchange of one currency for another at a current quoted/market price where it is always traded in pairs.

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To understand more about the benefits of FX CFD trading, check out our articles, “What is FX CFD & Why You Should Trade Them” and “A Beginner’s Guide to Profit from FX Swap Points”.

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Source:
1. https://www.china-briefing.com/
2. https://www.scmp.com/
3. https://markets.businessinsider.com/

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