Free trade is under stress globally as the European Union, China and the US put retaliatory tariff measures in place.
"ANZ Research foresees minimal impact from the current conflict on the underlying fundamentals of commodities.”
The good news: ANZ Research foresees minimal impact from the current conflict on the underlying fundamentals of commodities.
Indeed, ongoing supply-side reforms in China are having a greater impact on trade. With domestic output impacted, imports into China look likely to remain strong.
China is also taking a more-proactive stance on fiscal policy which should support domestic demand in the short term.
China has become less dependent on external trade in general compared to five or 10 years ago and is also less leveraged to commodities.