A man looks at a screen showing Chinese stock market movements as he uses his mobile phone in Beijing. Photo: Wang Zhao / AFP
The world is "breathing a collective sigh of relief" as China and United States put their economic differences on hold for the moment, NZ China Council says.
Local exporters would be hoping for something longer than the 90 day pause in the trade war between the two superpowers which starts on Thursday.
The two nations agreed to slash the triple-digit tariffs they were levying on each other's goods, roiling markets around the world.
NZ China Council executive director Alistair Crozier told Morning Report the release of the tariffs was essentially a ceasefire.
"It provides some cautious hope, [but] certainly no certainty right now," Crozier said.
He said it was a positive sign there was dialogue in place and negotiators were working well together because they have produced fast results.
"We are almost in glass half full, glass half empty territory at this stage," he said.
"It's a start, but it's going to be a long road ahead."
Crozier expects some trade would resume quickly, but noted there is still a 30 percent tariff on Chinese exports to the US, so there is still some caution.
He said it would be great if the rates go down in the future.
Markets have been volatile since details of US President Donald Trump's planned tariffs emerged. After the announcement US and China would cut tariffs temporarily, sharemarkets lifted.
Crozier said consumer confidence would have lifted as well, which would be beneficial to New Zealand companies exporting to China.
"I think the world is breathing a collective sigh of relief at the moment," he said.
For the small number of New Zealand companies manufacturing in China for the US, he advices them to "hope for the best and prepare for the worst".
