Foreign Ministry spokesman Hua Chunying said that the U.S. trade war against China, but also the world as the enemy, will drag the world economy into a dangerous situation. At the day's regular press conference, a reporter asked: the United States launched a trade war caused widespread international concern, the major economies, international authorities and a large number of multinational companies have expressed strong concern.
How does China view the impact of the trade war on the world economy?
Hua Chunying said the Ministry of Commerce's statement last week pointed out that the U.S. trade war against China, but also the world as the enemy, will drag the world economy into danger. First, the trade war has hit the growth momentum of global trade. The International Monetary Fund study noted that tariff threats and other barriers would increase import prices in all countries by 10% per cent and 5 years later, global trade would shrink by 15%.
The World Bank believes that the impact of tariffs between the United States and major trading partners is equivalent to the decline in trade during the 2008-2009 financial crisis. Second, the trade war shocks all parties ' confidence in the world economy. "The dark clouds that have enveloped the world economy are getting heavier, and the biggest and heaviest dark clouds are the deterioration of confidence," said International Monetary Fund president Christine Lagarde, who has warned. The escalating trade war has become the world's biggest "confidence killer", undermining the hard-won recovery and shaking the foundations of global economic growth.
The OECD predicts that global growth will fall by 1.4% per cent as tariffs rise in the countries concerned. Third, trade wars threaten the well-being of the global population. WTO Director-General Azevido said the trade war was bad for everyone and would have a serious impact on employment, with the poor losing up to 63% of their purchasing power.
U.S. economic institutions also predict that the trade war will cause 600,000 of Americans to lose their jobs, and U.S. workers, farmers and consumers are subject to collateral damage.
And, more importantly, for domestic political considerations, a custodians trade war is typical of unilateralism and 0 and thought, a complete setback to international rules and global governance since the end of the Second World War, and the damage to the world economy, if developed, could be deep-seated and indeed worrisome.