Moody's: US tariffs may have limited impact on China up till now

The US-based ratings agency, Moody’s Investors Service, is out with its latest report, assessing the impact of the US trade tariffs on the Chinese economy.

Key Points:

 The US tariffs may have limited impact on China so far.

But broad-ranging measures could pose greater challenges.

Measures by US administration to have limited effect on China's economy.

But assessment would change if the US also introduces broad-ranging protectionist measures.

If such measures are introduced, would have a negative impact on Chinese economic growth.

Currently assumes that any US action would be consistent with WTO agreements.

That would imply broad architecture of US-China trade relationship would remain intact.

Asia is exposed to unfavorable shifts in US trade policy because of its volume of direct exports to the US.

Series of wide-ranging protectionist trade policy decisions by the US would negatively affect credit profiles of Asian sovereigns, manufacturers.