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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