The trade negotiations between the United States and China seem to be doing well. The world’s two leading economies are working on a joint trade agreement which will put an end to their trade war, which has been a major source of negativity for the financial markets. Earlier today Gao Feng, the spokesperson of the Chinese commerce ministry, announced that progress has been made and that the work on the trade deal will continue, as there are more points to clarify between the two parties.
In other welcome news from China, its State Administration of Foreign Exchange announced that China’s asset market will become increasingly more open to foreign investment. The country will allow foreign agents to purchase bonds and stocks at an unprecedented rate as it aims to become an even more important financial center in Asia and a top choice for international investment.
In neighboring South Korea there have been signs of a slight economic downturn. This week the Bank of Korea published its projections for economic growth, now at 2.5% growth for 2019 and an expected inflation rate of 1.1%. This is lower than the previously expected goals of 2.6% and 1.4%, respectively. South Korea’s economy is largely dependent on exports, so the Bank of Korea stated that it is currently negatively affected by the general global pessimism and lower demand, not by an actual recession, so any serious trouble could be averted.
Meanwhile, Japan is also preparing to enter into trade negotiations with the United States. Prime Minister Shinzo Abe and Finance Minister Taro Aso are heading to the US next week.
