PETALING JAYA: The world can breathe a sigh of relief that the China-United States trade war had been averted after China’s President Xi Jinping and US President Donald Trump of United States met at the G20 meeting in Osaka.
Sunway Business School Professor of Economics Dr Yeah Kim Leng said Malaysian markets will open to this positive development, and they will experience a rebound in the short term.
“This improvement on global trade environment will definitely ease the business outlooks if US and China could remain amicable and hold a successful trade talk,“ he told theSun today.
Despite the positive note, Yeah said business leaders should be cautiously optimistic should the trade tensions flare up again for the second time around.
“They should diversify geographical sources of output so that they don’t reach to a stalemate should the trade war continue. They should adopt more strategic decisions and produce and export from different parts of the world,“ he said.
Meanwhile, DAP stalwart Lim Kit Siang said the world hopes that the temporary ceasefire would give the negotiators of both countries another chance to forge a permanent accord governing the vast flow of goods and services between the two largest economies.
He also said this was also the predominant view of the Chinese scientists, academics and IT professions when the DAP delegation met on a week-long fact finding visit to Hunan and Jiangxi.
“The size of the Chinese domestic market provides important advantages when it comes to innovation and it has already passed its critical mass in technological capacity and moved from imitator to innovator,“ he said.
He added that China has become a world leader in areas such as solar energy, mobile payments and high-speed rail, and Huawei is starting to use its own operating system called “Hongmeng” which is 60% faster than Android.