(Ben White – Politico)
The Chinese and U.S. economies are likely to slow in 2019, giving President Donald Trump and Chinese President Xi Jinping no choice but to declare a truce in their ferocious trade battle, according to a top Wall Street strategist.
“I think personally that the trade war is coming to an end and there is really nothing Trump can do about it,” Jim Paulsen, chief investment strategist at The Leuthold Group, said in the latest edition of the POLITICO Money podcast. “If you have the United States and China both with very weak economies, the negotiation around trade just evaporates. Neither party has any negotiating power left. They both have to stop what they are doing.”
Trump and Xi last month agreed to keep talking about a deal to end the raging tariff battle between the two countries, setting a March 31 deadline for an agreement. The stock market declined in 2018 in part over fear of what a full-scale U.S. trade war with China could do to both economies. Click here to read more.
- Why the U.S. Would Never Win a Trade War With China (CNN)
- Why the World Needs America and China to Get Along (New York Times)
- U.S. and China Must Step Off ‘Path to Disaster’, Warns Jeffrey Sachs (SCMP)