While the US-China trade war truce will ease external pressures on China’s economy, there remains a considerable risk for trade tensions to escalate again next year given a wide gap in negotiating positions, says Fitch Ratings.
In recent months, analysts have blamed rising trade tensions between the two countries for the slowdown of the economy, which has led to lower than expected VIP gaming revenue across Asia.
The ratings agency made the comments in a note on Wednesday, in which it affirmed China at “A+”, outlook stable.
Fitch forecasts growth in China’s economy to decelerate to 6.1 percent in 2019 and 2020, down from 6.6 percent in 2018. (AGB)