The expert assessed the consequences of the agreement between China and the United States on reducing the trade deficit

The agreement between China and the United States is already having a positive impact on global markets. Oil prices have started to rise significantly, and pessimism about the confrontation between the world's two largest economies is gradually receding, Maxim Chirkov, associate professor of the Department of Economic Policy and Economic Measurements at the State University of Economics, told Izvestia on May 12.

Earlier it was reported that a high-level meeting between representatives of China and the United States on economic and trade issues is taking place in Geneva.

"The global economy is responding positively, and the gloomiest forecasts of economists do not seem to be coming true. At least now the parties are demonstrating their willingness to negotiate, and this is already good news," Chirkov said.

According to the expert, the agreements in Geneva do not mean the final end of the trade wars. The settlement process will be long, but the very fact of negotiations is encouraging.

"The trade wars between the United States and China are constantly being waged, not only in the form of duties, but also through financial restrictions, currency wars and sanctions. The conflict has now reached a particularly acute stage, but it is rather harmful for both countries," the economist stressed.

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At the same time, China remains a strong point in this confrontation.

According to the expert, according to data for 2024, China's economy is already 30% higher than the American one in terms of purchasing power parity. In addition, despite the decline in exports to the United States, China has managed to redirect its shipments to other markets such as Europe, Southeast Asia, Africa and Latin America.

"Economic confrontation is inevitable in the future, but the intensity of rivalry is likely to decrease. Sanctions do not solve problems, but only harm both sides," Chirkov concluded.

Earlier, on April 22, the head of the US Treasury Department, Scott Bessent, said that the ongoing trade standoff between Washington and Beijing is unstable, and its de-escalation may occur soon.

On the same day, US President Donald Trump announced that the United States would reduce the percentage of customs duties on China, but not to zero. Then he admitted that the total US duties on goods from China, which currently amount to 145%, is a lot.