One of Wall Street’s leading authorities on Asia believes China is in no rush to cut a trade deal with the United States.
Despite China’s worst quarterly growth number in 27 years, Yale University senior fellow Stephen Roach contends its economy isn’t as bad as the latest figure implies.
“I was in China last week, and the general sense was that the economy was slowing in the manufacturing sector. The larger, more rapidly growing services sector was likely to provide a source of resilience,” he said Monday on CNBC’s “Trading Nation. ”
Roach, who lived in China from 2007 to 2012 while he was chairman of Morgan Stanley Asia, still regularly meets with government officials, business executives and academics in the region. During his latest talks, he didn’t observe a heightened sense of anxiety over the ongoing trade war.
According to Roach, the climate suggests China will resist moving aggressively to cut a trade deal out of economic slowdown fears. Unless the trade war with Washington escalates, Roach contends China’s coping strategies will be effective.
“China has ample policy space to continue to address the downside of its current growth trajectory,” he said in a note to CNBC, citing monetary, fiscal and currency issues.
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