China, US sign duelling deals after agreeing to trade war truce
Following their tariff reductions, China and the US have unveiled major investments – Beijing in Brazil and Washington in the Middle East
China and the United States have agreed to a temporary, partial truce in their unprecedented trade war, but their heated rivalry is far from over.
As the dust settles in the wake of April’s frenzied tariff battle and Monday’s deal that saw import duties drop 115 per cent on both sides, the world’s two largest economies are actively courting emerging markets to gain the upper hand in the event tensions flare up again.
Here, we summarise the recent agreements struck by China and the US, and examine what their actions reveal about their intent as global dynamics continue to shift.
What deals did China make with Brazil?
The People’s Bank of China renewed a 190 billion yuan (US$26.38 billion) bilateral currency swap agreement with Brazil, valid for five years. The deal is expected to boost local currency use, encourage trade and investment and support the financial stability of both countries, according to the central bank. Both sides also pledged to fight money laundering.
Among these commitments, the Beijing-headquartered on-demand service giant Meituan signed a US$1 billion deal to expand its Keeta food delivery platform to Brazil, following successful launches in Hong Kong and Saudi Arabia.
Mixue Group – China’s fresh drinks chain that has become the largest fast food franchise in the world – also announced plans to open its first Brazilian store this year and expand imports of coffee beans, fruit and other agricultural products from the country. The company said it would aim to purchase at least 4 billion yuan in goods over the next three to five years, which it projected would create 25,000 jobs.