VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

There is no endless storm. There is no war that lasts forever. Maybe, that's the right phrase to describe the new phase of the United States and China trade war that has occurred for two years and caused a slowdown in the global economy. United States President, Donald Trump and Chinese Deputy Prime Minister, Liu He signed the first phase of a trade peace agreement on Wednesday 15 January at a meeting at the White House. Even though this phase I agreement has been signed, the US will still impose tariffs on imported goods from China until there is a phase II agreement. However, the US agreed to suspend tariffs on a number of electronic products worth $ 160 billion US dollars. The tariff is valid on December 15, 2019. This phase I agreement is expected to be a good start after the two countries are involved in a trade war. However , many parties still doubted what would happen after the signing of this first phase of the trade agreement.

The thing that can be underlined is that in the agreement China will buy more goods from America. This will slightly cover the impact of trade wars that have been felt by America for 2 years. The impression is that the agreement that was signed last did produce several victories for the US. Because China agreed to buy US goods of around US $ 200 billion. More over, in the next two yearsUS companies will get more access to the Chinese market, and more intellectual property protection. But the Chinese economy is actually also seen as getting a short-term boost from the trade agreement. There are some stimulatory measures, such as more spending by local governments, lower taxes, and more bank credit. A ceasefire can also help reduce the slump in business and investment sentiment in China.

The question now, how is the impact on countries whose economy has also been affected by the American-Chinese trade war so far? In 2020, the tariff rates that have been applied or announced will make global economic growth drop 0.8 percent. This was revealed by IMF Managing Director, Kristalina Georgiva. Global economic conditions have already been affected by the trade war that has occurred over the past 2 years.

Of course, the world community welcomes phase I of the trade agreement between America and China. Yet, the effects of a trade war need time to recover. For the internal conditions of China and America and globally as well. Hopefully, the next phase of the trade agreement will immediately accelerate the improvement of the global economy.