In China, the economic activity deems to have rebounded back to the correct ways after factory output and growth showed signs of positivity and posted profits for the first time in 7 months. The ongoing trade war just doesn’t seem to fade away and with the US again increasing the tariffs and minimizing its exports to the world’s second-largest economy.
The final outcome is not expected to come any time soon with the ongoing situation and if Washington and Beijing can strike a trade deal and improve the business relationship we might just have started looking at another economic recession since 2008.
The National Bureau of Statistics said that the Purchasing Managers’ Index (PMI) a key indicator of the activity of the factories in China raised to 50.2 this last up from 49.3 in October. Experts say that the recent uphill trend in factory output shows that the Chinese economy is still expecting a partial trade deal between the US and China and to end the trade war that has been dragging on for the last 20 months.
According to Chinese media, the negotiators from both sides held talks over the phone and to agree to solve the remaining issues for the first phase of the deal to complete.
The total amount of tariffs issued against each other has been worth at half a trillion dollars worth of two-way trading. The matters have worsened in the last couple of months but the countries hit by low economic activity and growth and with the possibility of another global recession have wanted to hold talks with each other although there has been no final commitment from both ends to reduce the tariffs.
Beijing has adapted to some new ways of doing business after its American imports started to reduce by a huge margin in the last few months.