US, China trade war wounding the global economy

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PRETORIA - China will not sit back while the trade war continues to have a knock-on effect across the world.

That’s according to Chinese ambassador in South Africa, Lin Songtian.

Since last year, the US imposed tariffs on billions of dollars’ worth of Chinese products.

READ: IMF warns US-China trade war will 'jeopardize' 2019 global growth

The second-largest economy has retaliated with hikes on some American goods.

South Africa has ties with both the US and China - so what does this mean for us?
 
“Unfortunately it’s very bad and negative to the whole world. America and China are two major engines to the global economy. If these engines collapse...the whole world will pay the price", said Songtian.
 
That’s how the Chinese ambassador in South Africa has described the raging trade war between the US and China and there is no solution in sight.
 
The tariffs are targeting Chinese-made industrial and consumer products, but Beijing is also not backing down, targeting products like coal, medical equipment and chemicals.

The second-largest economy says it’s willing to negotiate a successful deal with Washington.
 
“We don’t like to fight we are ready to reach the mutually beneficial agreement with America and we will not compromise”, he said.
 
Experts say what has happened is unprecedented.

It points to the lack of faith in the global and multilateral trading system.

READ: China to create company blacklist as US trade war escalates 

“The knock-on effect is really bad because when protectionism grows we will lose the market for our goods make much less and the entire global value chain will be in jeopardy. Poverty will grow and inequality will continue to grow”, said University of Pretoria Political Sciences professor, Siphamandla Zondi.

Despite global uncertainty in the world markets, the Chinese are confident they'll cement bilateral ties with South Africa and Pretoria remains a key partner in Africa.

Source
eNCA