Stocks of companies with heavy exposure to China soared. Shares of Deere Company rose 1.9 percent, while Apple gained 2.7 percent and Wynn Resorts, which generates the bulk of its revenue from casinos in China, surged 6.3 percent. An index of semiconductor companies, which depend on Asian supply chains, gained 2.3 percent.
Business groups expressed relief that the negotiations between the United States and China appeared to be making progress after more than a year of sputtering, yet they acknowledged that the agreement fell short of the sweeping deal that Mr. Trump had promised.
John Neuffer, the president of the Semiconductor Industry Association, said the deal was “welcome news” for his industry that would give “both sides a chance to get back to the negotiating table to strike a more comprehensive deal.”
The initial reaction among Republican lawmakers was cautiously optimistic. Senator Charles E. Grassley of Iowa, the Republican chairman of the Finance Committee, said that any progress was good news, but that Mr. Trump must reach a more substantial deal for the pain of the trade war to have been worthwhile.
“After so much has been sacrificed, Americans will settle for nothing less than a full, enforceable and fair deal with China,” Mr. Grassley said. “I look forward to learning more details in the coming days.”
Trade experts in China were quick to welcome the deal as a breakthrough.
“It the first time since the start of the trade war that negotiators have reached some solid result,” said Cui Fan, a prominent professor of trade policy at the University of International Business and Economics in Beijing.
Mr. Trump’s defenders say China’s concessions will generate positive momentum for future talks and result in more business for farmers and manufacturers as they continue to press Beijing for a broader pact to correct longstanding economic abuses. Critics say that the move will go only part way toward resolving a crisis of the president’s own making, and that the trade war will continue to slow the global economy.
Article source: https://www.nytimes.com/2019/10/11/business/economy/us-china-trade-deal.html?emc=rss&partner=rss
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