Analyst unpacks the U.S.-China relationship status
CNBC · Just In
CNBC
Just In
TCW Group's Managing Director of Emerging Markets, Jae Lee, shares his views on U.S.-China ties, saying the world's two biggest economies are not likely to decouple, but he also doesn't expect a grand bargain on trade between Washington and Beijing.
Breakdown
- Both the U.S. and China have vulnerabilities in negotiations and must avoid aggressive tactics.
- A major decoupling or grand bargain between the two countries is unlikely soon. 28s
- China maintains leverage with rare earths, while the U.S. holds strength in semiconductors. 1m 16s
- Policy measures like floor prices and government investment require long-term, coordinated efforts. 3m 14s
- Short-term solutions may act as a tax on rare earth users without broader policy changes. 4m 27s