However,she conceded that for some companies there had been uncertainty and surveys of chief financial officers in China undertaken by UBS found some firms were moving out of the country.
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While this trend has been going on “for years” due to changes such as higher labour costs,she said the trade conflict had become an additional reason for companies to consider going offshore.
“There may be some noise in 2020 but generally speaking …[the] trade war might improve,” she said.
However,UBS global research chief Arend Kapteyn said the long-term relationship between the US and China was largely dependent on the next US president after the election in November. If Democrat frontrunner Joe Biden became president Mr Kapteyn suspected there would be a de-escalation and a more predictable and rational regime.
In the meantime,he was uncertain about what future trade truces would look like and criticised the phase one deal as “quite narrow in scope”.