US-China trade tensions cooling is "positive for both economies": Economist

Economic Decoupling - Both the US and China have achieved a degree of economic decoupling, mitigating the impact on each other's economies [1] - US exports to China, such as soybeans and airplanes, are not critical to the overall US economic outlook [1] - Similarly, Chinese exports to the US are not crucial for the Chinese economy [1] Supply Chain Concerns - Potential supply chain disruptions exist, particularly concerning materials needed for autos and defense, including rare earth elements [2] Trade and Tariffs - The US hiking tariffs to 145% on China earlier in the year is unsustainable [3] - Trade is integrated enough that complete decoupling is not possible, despite efforts over the years, especially during Trump's first administration [3] - De-escalation of trade tensions is anticipated and should positively impact both economies [3]