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The knock-on effects of the ongoing China-U.S. trade war on business and commerce are being felt across the world.
“Unless a deal between the world’s largest and second-largest economies is inked, other large economies and international organizations like the WTO (World Trade Organization) and the IMF (International Monetary Fund) would not find a clear clue on how to tackle these many trade issues,” Jiang Yuechun, director of the China Institute of International Studies, told CGTN Digital.
Jiang even recalled an embarrassing moment last year at an IMF meeting on the global economy which was expected to be very productive, but turned out to be just empty talks as China and the U.S. could not reach agreement.
Amid the global slowdown, Neantro Saavedra-Rivano, former consultant to the Asia Pacific Economic Cooperation (APEC) Forum, believes Brazil will face a complex situation.
“Initially, Brazil’s market was expecting a positive mood, but the situation has changed so we have seen different crises, disagreements in the government itself.” 02:05
Nick Vyas, assistant professor at the Marshall School of Business, University of Southern California, agreed that the trade dispute has created tremendous friction across the globe.
“Many countries feel the ramifications of this trade dispute,” Vyas explained. “I think there are two sides of this equation: Those jobs that were actually sent over to China may start to come back, what we call on-shoring or right-shoring; but there will be other jobs, like retailers and manufacturers that depend on the Chinese economy (who want those goods and services to be affordable in China) that could be impacted heavily.
“What we see is that market is looking for some sort of stability. Markets do not like uncertainty, nor does the global trade. I think this can be a good opportunity to talk about major issues.”
Vyas also talked about other existing trade issues, such as subsidizing, commodities and protecting the Chinese market and opening up to the United States. He predicted that those issues will be a crucial part of the discussion.
“Hopefully China and the U.S. can actually agree on some concrete takeaways, and that can be very productive, for China and the U.S., and for the rest of the global economy.”