Escalating the war of words, US President Trump has warned China that he will be even more tough with the country if he succeeds in winning a second term in the elections due next year.
US-China Trade War: International trade experts have warned of the adverse impact of ongoing bitter trade war between the two largest economies of the world – the US and China – on the entire indo-pacific region. US President Donald Trump today dramatically escalated his threats against China despite Chinese Vice Premier and the country’s main negotiator with the US tried to struck a conciliatory tone. Trump today warned China to concluded a deal soon, threatening that a deal will be even tougher if he succeeds in winning a second term at the White House. The warning came in response to a conciliatory approach adopted by Chinese Vice Prime Premier Liu He that his country opposes a trade war with the US as it was not only bad for both the countries but to the world as a whole.
“China firmly opposes a trade war as it is not good for the country, the United States and the world,” China’s Vice Premier Liu He told state news agency Xinhua.
China hoped the two sides seek common ground while setting aside difference and that they can resolve the issue on the basis of equality and mutual respect, Xinhua quoted Liu as saying.
But these views were not reciprocated by the US side as President Donald Trump today accused that China would prefer another candidate in White House after the Presidential elections that are due in November next year.
Both sides have imposed tit-for-tat tariffs on goods and services worth hundreds of billions of dollar in the ongoing trade war between the two countries that started in March last year.
Impact on the global economy
Stephen Olson of Hong Kong-based Hinrich Foundation, who has experience of more than three decades in international trade and commerce told Financial Express Online that as a whole this trade war will be bad for the region and the world.
Countries like India, Vietnam, and Malaysia were expected to be beneficiaries of the US-China trade war as western companies were trying to shift manufacturing base away from China to avoid any possible US action.
However, experts like Stephen Olson believe that come countries might be beneficiaries in the long term but in the long run, it will hurt everyone.
“Setting aside any short-term benefits any country might receive, the larger and more important longer-term point is that all of the Indo-Pacific region has been a major beneficiary of an open, rules-based global trade system. To the extent the US-China trade war indicates that the system is in danger of breaking down, that would be bad for the entire region,” he said.