Sophia Posted May 23, 2020 Share Posted May 23, 2020 Hi there, With both China and the US being major players in world economy,how do you think their trade war is affecting global markets? Quote Link to comment Share on other sites More sharing options...
0 Hernandez Posted May 23, 2020 Share Posted May 23, 2020 Hi Sophia, The world economy is already facing a 3% contraction this year. Such a slump only happened during the Great Depression. Recovery from such an economic schism is not guaranteed and could take a long time. This economic schism faces an additional danger in the form of a trade war between China and the US. Should tensions escalate, it would morph into a conflict strongly weakening the world economic recovery from the pandemic. Another danger lies in stifling critical technological innovations. Before the pandemic, economic experts warned a worsening US/China conflict stood in the way of development in super-fast 5G networks and artificial intelligence. The US wishes to stop Huawei’s collaboration with US firms, by preventing Huawei obtain or make semiconductor chips with the US-made technology and software. Another trade war between the two economic superpowers would take a big toll upon consumers and businesses. For instance, in March 2020 alone, US farmers and enterprises paid tariffs in excess of $3.9 billion due to this trade war. The Covid-19 pandemic has wreaked unparalleled havoc on US/Chinese farmers and businesses. A tariff set back is the last thing any firm would have to worry about during and after Covid-19 pandemic. Quote Link to comment Share on other sites More sharing options...
Question
Sophia
Hi there,
With both China and the US being major players in world economy,how do you think their trade war is affecting global markets?
Link to comment
Share on other sites
1 answer to this question
Recommended Posts
Join the conversation
You can post now and register later. To reply to this question, sign in or create a new account.