In recent weeks, the data have shown the Dow Jones to remain completely stable by keeping the 25,500 point level stable despite the soaring tension between China and the US. The analysts including CEO Richard Fontaine of the Center for a New American Security and editor-in-chief Hu Xijin of Global Times Chinese and English editions have predicted the trade war to be long-lasting such that the Dow Jones will find it difficult to maintain its stability in the upcoming days. Thus, the deal is definitely not going to help keep Dow’s future secure. Both the nations have been found left lost in an argument on the trade. According to Xijin, the population escalation in China could have a massive impact on the trade is what the US intents to tell China. China but thinks the US wants to sabotage its economic growth.
The latest Huawei problem has helped the Chinese develop an understanding of misreading the US’s intentions. Thus, the US needs to explain its side clearly. Many of the Chinese local analysts have pointed the current deal wherein the US demands the Chinese to bring about key alterations in their industrial policies is just not convincing to the locals. The US president also has received bipartisan support for the current approach of handling the trade war dispute. The trade war is at an impasse now as the deal put forth by the US is not compelling the Chinese locals and the US is unwilling to comprise in addition which is the reason the unsettlement of the issue.
Dow Jones finds itself in a great loss if the deal remains uncertain and in turn, the whole entities market‘s growth is slowed down as it depends on both the sides. The conflicts seem to stay but the other nations like Saudi Arabia, Russia, Iran, and more think it’s time to reckon. The tariffs on the global economy are quite evident and exhaustive for the government. If the deal is to work out then the Dow Jones and the SSE Composite could bounce back in the economic scale and if not then there are chances the investors may back off.