Since Joe Biden was officially inaugurated as president of the United States (U.S.), many market players have hoped that trade relations between the U.S. and China will show a recovery. It becomes a question mark as to how Biden will realize that. Will Biden enter into a new agreement with China?
Following this, economists have given the view that Biden will most likely not enter into a new agreement with China or reduce tariffs on Chinese goods. However, based on available indicators, economists are of the opinion that Biden is willing to re-engage in multilateral trade agreements.
While former U.S. president Donald Trump is best known for his slogan ‘America First’, Joe Biden is best known for his slogan “Buy American”. This is one of the factors, Rashmi Banga, UNC economist thinks tensions will continue. He added that the U.S. would not change its policy in the technological competition imposed on China.
To curb China's presence, the United States will be more determined to reaffirm their presence in the Asia-Pacific region by cooperating to overcome China's political, commercial and military influence.
Thus, there is a possibility that the U.S. will rejoin the CPTPP agreement. The US dollar index declined 0.34% against major currencies to 90.625 exchange rates as of 10.15 p.m.
