According to the Portfolio Manager of the Industrial and Commercial Bank of China, the largest in the world in total assets, it will take some time for a trade agreement between Washington and China. Meanwhile, Chinese will act to expand their international relations. Italy will benefit from its support to the Belt and Road Initiative.
MILAN, March 20 (Class Editori) -- The normalization of relations between China and the United States will still require some time, that Beijing will use to strengthen relations with other countries. "For Italy this is the right time to expand its international relations", explains Derrick Sun of ICBC, the day before the Chinese president Xi Jinping's visit to Rome, at the end of which a Memorandum of Understanding should be signed for the collaboration along the new Silk Road. Italy and China, he emphasized in the margin of a meeting organized in collaboration with WisdomTree last week in Milan, "could benefit from the strengthening of their bond and Italian support to the Belt Road Initiative".
For the ICBC Portfolio Manger, the question of Italian political support to the Belt & Road "can also be analyzed in the light of the commercial dispute between the first two economies in the world. I believe that an agreement between Washington and Beijing will be reached this year, but it could be postponed until the second quarter. On the Chinese side, more time is needed to prepare all the discussion points and to take some actions to understand the real US will. While, on the American side, the president Donald Trump is more interested in the upcoming elections: the later an agreement will be reached- so that it is closer to the round of election- the better it will be, because it could be used as a lever with the public opinion to try to get a second term. China must also consider what could mean the outcome of the elections in the United States: different winners imply different strategies. We can therefore say that the later the agreement is reached, the better for both parties".
Sun stamps out concerns about disasters on the markets in the absence of an understanding between the first two economies in the world. "I believe the possibilities are very limited: first of all, both China and the United States would benefit from a positive solution because, in the event of a real trade war, both countries would suffer the consequences; the second factor is that as the elections approach, it is clear that Trump has not been able to exploit the best opportunity of popularity, namely the conclusion of an agreement with North Korea. Therefore, he cannot afford not to reach one with China, otherwise he would be seen as a "loser" president. These reasons make me quite confident that some kind of agreement will be reached".
On the Chinese side the last National Assembly opened the market access: agencies will be set up to closely monitor and enforce intellectual activities and the protection of intellectual property and, as regards the automotive industry, the Chinese government has already granted Tesla the possibility to open a fully owned factory in Shanghai. "All these actions demonstrate China's commitment and sincerity," stresses Sun.
(Source:Class Editori)
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