US-China tensions will weigh on global credit conditions
US-China relations to remain contentious, clouding global credit conditions
The US and China have declared a truce in their trade battle while they continue negotiations toward a trade deal. Despite this temporary de-escalation of hostilities, we expect the relationship between the world's two largest economies to remain contentious. Narrow agreements and modest concessions in the ongoing trade dispute will not bridge the wide gulf in the US and China’s respective economic, political and strategic interests.
