China F&A Monthly: December 2018
The US and China have reached a temporary truce in their trade war, having agreed at the G20 summit not to increase tariffs for 90 days. Both sides will try to work out a deal, but essentially China has more to do, including narrowing the trade deficits and opening up markets. China has indicated that it will buy more agricultural products. This is good news for market sentiment, for now. Domestically, product prices remain high and supply is still under pressure, due to environmental regulations and African swine fever (ASF). Health remains the main theme for consumers, with health supplements and foreign imports big winners in yet another record-breaking Singles Day sales.
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