Expert: China-US dispute hurts global supply chain
CGTN's Hu Binyi
The IMF said in its latest report that trade tensions have damaged the economies of both China and America. What's more, the report also showed that tensions will subtract about 0.3 percent of global GDP in the short term.
Another international organization, the WTO, also warned that the trade restrictions would hurt all economies.
However, Li Yong, a senior fellow at the China Association of International Trade, predicted that President Trump will continue to ignore the impact of U.S. actions on global trade and warnings given by international organizations.
When the damage to the U.S. economy is large enough that the business community, farmers and consumers become angry and Trump's approval rates are affected "that will be the time when they will seriously listen or make a self correction," Li said.
The IMF report also pointed out that consumers would likely bear the brunt of the increased costs caused by the tariffs.
The trade tension between China and the U.S. also shook China's trade environment. China's Commerce Ministry recently released a report saying China's trade environment is growing more uncertain and challenging, and some foreign companies would probably relocate their manufacturing factories to other areas with even lower cost.
"Yet with the lack of supply chain and inefficient logistical systems in some relocation destination countries, relocation is not saving money for the companies, and it's very inconvenient," Li said.
China is putting in more effort to achieve the goal of stabilizing foreign trade and improving the business environment to encourage more foreign companies to come to China to do business, while improving its quality, Li said.
The trade war is now resulting in a technological decoupling between the U.S. and China, Li said, adding that the Huawei ban has spilled over into other areas involving different Chinese companies.