Eric Robertsen, chief strategist and head of global research at Standard Chartered Bank, said that Standard Chartered is optimistic about the relationship between the United States and China and expects the relationship between the two countries to improve in the next “12 to 24 months.”
In an interview with CNBC’s “Squawk Box Asia” on Monday, Robertsen said that even though US President Joe Biden and his team are committed to improving domestic growth, they also realize that creating conditions for global trade to flourish is essential.
He said: “I don̵
He pointed out: “The Biden team has made it very clear that they believe that the tariff strategy is flawed. Having said that, I don’t think they will reverse this situation tomorrow.” Part of the broader negotiation strategy. “
In an interview with CNBC last week, U.S. Treasury Secretary Janet Yellen said: “At present, we have maintained the tariffs set by the Trump administration.” However, she added that the Biden administration will assess the progress. direction.
The White House also said last month that it will review all national security measures taken by the Trump administration, including the first phase of the Sino-US trade agreement.
Trump signed a preliminary trade agreement with Chinese President Xi Jinping in January 2020, suspending the trade war for nearly 18 months, in which hundreds of billions of dollars worth of US and Chinese goods have been hit by retaliatory tariffs.
Sino-US cooperation areas
Despite the current trade tensions between the two largest economies in the world, Robertson is optimistic about improving relations between the two countries.
He said: “I do see some areas where China and the United States may have common ground, and climate is one of them. This is an area where the two countries can make major improvements and can do more in other areas. Compromise and lay the foundation.” said. “I am relatively optimistic that in the next 12 to 24 months, you will see a better description of the relationship between the United States and China.”
In addition, Robertsen pointed out that the Biden administration is unlikely to use currency as a tool to influence its trade agenda.
He said: “We believe that the Trump administration uses this label with currency manipulation power as one of many tools trying to help them achieve or pursue a specific trade agenda.” He said: “I think Biden is in this tactic. Will not be so active.”
Last year, the US Treasury Department under Trump referred to Switzerland and Vietnam as currency manipulators. It also added India, Thailand and Taiwan to the list of countries that they said they might deliberately devalue their currencies against the U.S. dollar. A weak currency makes a country’s exports cheaper internationally, making these exports more attractive.
Robertson said that the Biden administration hopes that the currency market “can operate freely and efficiently, with as little intervention as possible.”