The trade war between the United States and China and the global concerns that arise are now in full swing. So the concern is not going to be taken away or it is not a wise thing to do. Because the whole world is facing the brunt of the war. No matter how little these two countries think of ‘little care’, its value is paying the whole world. It is only natural for the two major powers of the world to engage in conflict. That’s it. But that does not go to Washington, at least, to start a trade war; At least not the US president.
US President Donald Trump made it clear on October 9 in his speech. In his view, China has been sidelined in the latest talks. Great victories have been achieved. Because, if the US proposal was or if China agrees to buy a few hundred million US dollars, no further tariffs will be imposed on Chinese products. Talking, how many hundred million dollars? Trump’s comment, ‘The number is huge. I said 1 (1 billion), my people said 25 (2 billion). ‘ He then informed that he did not give a discount below five thousand crores.
It’s not about speed to understand the meaning of this commentary – no compromise. Not to be. Because the figure is too big. Importing goods from the United States just in the sense of such a large number means that China will have to neutralize its other allies. At the same time, it agreed to this huge import but it did not match China’s demand. Because China is not a new taxpayer, it wants the existing one taken away. As a result, this proposal does not match their initial request. Therefore, such a compromise proposal should be scrapped before being written; The sign is far away. But if the proposal is good, it could be signed at the Asia-Pacific Economic Co-operation Forum next month in Santiago.
As a result, there is hardly any possibility of destabilizing the existing global economy. In this related analysis, the British economist The Economist says the global economy is currently facing some kind of skepticism. The negative effects of a trade war are increasing manifold. Due to the war, the economics of different countries are being affected by uncertainty. This is creating a kind of stagnation in the economy, which has a direct impact on growth.
This week, the International Monetary Fund (IMF) re-evaluated its global growth forecast. It said that last year, where the global economic growth was 5.7 percent, this year it will come down to 5 percent. The pace of growth will be slower in the US and Europe. This will be much lower than predicted before last July. In 2020, China’s growth will be below the first 5 percent in the last five years. Hong Kong will suffer the most because of the ongoing unrest. While the potential growth last April was called 2.7 percent, the new forecast reduced it to 9 percent. Not only that, but India’s economic growth will also have a push. According to the report, the country’s growth rate will be 5.7 percent instead of 5 percent.
The importance of the ongoing crisis in Hong Kong is immense. Because it is believed to affect the US-China trade negotiations immensely. In the meantime, many signs are beginning to become visible. At least that’s the suggestion that the US House of Representatives recently passed a resolution on Hong Kong’s autonomy and its assessment of China’s role in violation. Naturally, such a move by the US Congress has angered China.
The whole world is being hit by the trade war. No one in the world is isolated. As a result, the instability in the market has a direct impact on the manufacturing sector. Manufacturing factories have become cautious. Very few organizations are interested in purchasing machinery or equipment for the long term. At the same time, this volatility has attracted an investment rush. Apart from the reduction in the amount of investment, it has not been able to take a very positive role in the economy because of its kind. This is because most of the investment at this time is for short-term planning. The biggest crisis in the capital markets. In the current uncertainty, it would not be an exaggeration to say that the capital market is moving over the yarn. In any event, even irresponsible utterances, it can be twisted and broken. All this together, the US gross domestic product (GDP) will suffer as much as a tenth of a percent and China’s GDP at 2 percent. What is the percentage of money in the currency?
If the IMF is true, it will be $ 3.5 billion in the United States. And in China, $ 1 billion. Undoubtedly a much larger number. Its victims are probably bigger than they should ever be. Will the word of this custom reach the ears of Donald Trump, who wants to understand nothing but ‘Great’ and ‘Win’?