Development in China presents a mixed picture.
On the one hand, the Chinese economy is expected to maintain robust levels of growth in the coming years with revenue continuing to expand at a rapid pace. Yet on the other hand, China’s social services like its health care system are woefully inefficient, causing incalculable tangible and intangible losses. Geng Xiao argues that Chinese policymakers need to invest more material resources and human capital to improve the efficiency of government financing of social services.
The U.S. still has some leverage over China, because China clearly wants a deal. ... U.S. financial markets also seem to have been boosted by the prospects of a U.S.-China trade deal, so I think it could have a negative effect on both financial markets and economic activity in both countries if a deal is not struck