Implications of a U.S.-China Trade Deal: Who Wins? Who Loses?

PGIM Fixed Income

April 2019

Nathan Sheets, PhD, Chief Economist, Head of Macroeconomic Research, and George Jiranek, Analyst, Global Macroeconomic Research

As the United States and China work toward a resolution of the ongoing trade war, an important question is whether the agreement will achieve any appreciable further opening of the Chinese economy and, if so, how such gains will be distributed across China’s trading partners. The U.S. Administration will take pains to ensure that the deal brings benefits to the United States, but what about the implications for the rest of the world? In this essay, PGIM Fixed Income provides some perspectives on these important questions and also looks closely at the behavior of the U.S.-China trade imbalance and how a trade agreement might affect the imbalance going forward.




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