The China-US phase one trade deal, reached on the basis of equality and mutual respect is undoubtedly good news for the manufacturing industry. 

However, now that a "phase one deal" has been secured, the trade war is finally given a platform of stability as the two parties work on a solution, and not escalation. Therefore, even if some tariffs remain, businesses are given a clear sense of direction, surety and boundary which thus induces confidence in what can be invested in without fear of China-US economic relations further destabilizing.

From this backdrop, China's export growth is likely to rebound, with continued gains in manufacturing and industrial production. Chinese factories and enterprises which were about to be hit with new tariffs no longer face uncertainty and in tandem, American businesses who are relying on these supply chains can now continue pursuing their orders without disruption, as well as other overseas customers who may have lost confidence in Chinese suppliers.