China-US Trade War: Former Chinese officials: Trade war hitting US industries

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02:37

A group of former government officials and industry organization leaders have shed light on the ongoing trade tensions between China and the U.S. They say the trade war has already seen ripple effects in a number of sectors including finance, agricultural and auto markets. CGTN's Cui Huiao reports from a trade seminar in Beijing.

Since the Trump Administration waged a trade war with China, some of the most visible and devastating effects have hit the financial sector.

Markets around the world jittered, in response to mounting fears of uncertainty and a potential crisis.

DAI XIANGLONG FORMER GOVERNOR OF PEOPLE'S BANK OF CHINA "The three major U.S. stock indexes have all seen their biggest dips since the 2008 financial crisis. European, Asian and Chinese markets have been heading down. The escalation of the trade war could cause another global financial crisis."

Speakers at the High-End Seminar on Sino-US Economic and Trade Relations say the trade war is hurting everyone, not just ordinary consumers, but also American farmers. For example, one fifth of China's imports of agricultural products from the U.S.. and yet, in the first quarter of this year, imports of soy beans, corn, and cotton have decreased over 50 percent.

CAO DERONG, PRESIDENT CHINA CHAMBER OF COMMERCE OF IMPORT & EXPORT OF FOODSTUFFS "American agricultural products association leaders always tell me China is the U.S. most important export market. But the U.S. ignores the voices of its own farmers. This is why farmers oppose what the U.S. is doing."

China is already the world's largest auto market, and it keeps growing. However, American auto companies could lose market share if the tension escalates.

DONG YANG, FORMER EXECUTIVE VICE-CHAIRMAN CHINA ASSOCIATION OF AUTOMOBILE MANUFACTURERS "They would face fierce competition from German and Japanese competitors. U.S. auto parts makers will be forced to change their global footprint."

With regard to the global economy, speakers say many warning signs have popped up.

Unemployment rates in countries like India and South Korea have gone up by more than 4 percent in April.

International trade slowed down in 2018, and foreign direct investment worldwide is at a low level.

ZHU GUANGYAO CHINESE FORMER VICE MINISTER OF FINANCE "Rule-based international order is now being challenged. And ironically, that challenge comes primarily from the U.S., which was the pioneer of the order."

CUI HUI'AO BEIJING "Former Chinese officials warn the trade war is going to be a long-term battle, but they also say the country is not afraid of the pressure put by the U.S, as the country will take various measures to fend off risks, and continue to open up and strive for high quality growth. Cui Hui'ao, CGTN, Beijing."