US-China trade war to impact both countries – ANZ

According to analysts at ANZ, the trade dispute between the US and China reflects fundamental differences between the two countries.

Key Quotes

“The US adopts a unilateral approach while China advocates multilateral platforms, ie World Trade Organization (WTO). Both countries also interpret WTO commitments differently.”

“Trade tariffs will ultimately impact both countries. We believe that China will require more stimulus measures to offset the impact of the declines in its exports.”

“In our view, China will employ proactive fiscal, industrial and targeted credit policies, but further quantitative easing is ruled out.”