By Ed Ballard
A trade truce with the U.S. will boost China's economy, Morgan Stanley said.
-- Some exports could be front-loaded as companies try to take advantage of the trade ceasefire.
-- China's economic growth rate could top the bank's 4.5% forecast for the three months through June.
-- Growth in the following quarter could beat the roughly 4% level that Morgan Stanley previously expected.
"The tariff pause offers a reprieve from what had begun to resemble a bilateral trade embargo," economists including Robin Xing wrote.
At the same time, "a durable resolution remains challenging, given the complex bilateral relationship," they said.
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May 12, 2025 10:10 ET (14:10 GMT)
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