The US-China trade war may be even worse

Many scholars, business leaders and politicians are worried about the outcome of the war as the United States is even harder on China in Hong Kong.

The first-phase trade agreement between the United States and China has not been signed yet, despite being introduced by US President Donald Trump since October. This has made businesses even more uncertain about the future.

The US is even tougher with China on the issue of Hong Kong – the city of great importance to Beijing. Hours before the New Economic Forum opened in China on Thursday, US lawmakers passed the Hong Kong Democratic and Human Rights bill. Accordingly, the United States will annually assess whether Hong Kong is autonomous enough to continue to enjoy trade and economic incentives. China has criticized the bill.

At a forum in China, former US Secretary of State Henry Kissinger said the two countries were “approaching the Cold War”. Unresolved conflicts could cause problems “worse than” World War I. Chinese Vice President Wang Qishan also called on the two countries to abandon the “Cold War mentality”.

Chinese President Xi Jinping yesterday said he wanted an agreement based on “equality and mutual respect”. However, even if this agreement is signed early, the meaning it may bring may not be great.

“When I look at the content of the agreement, it feels like we’re just climbing out of the hole we just dug,” Anja Manuel, an analyst at RiceHadleyGates, a consultancy, told CNN. Agreeing to lift import duties and restore purchases of agricultural products only solves “self-created” problems. Without significant progress, businesses will still reduce investment, dragging global growth.

And even if the U.S. and China agree on trade-related issues, some experts say there are still bigger issues to address, such as ensuring fair competition on public advances. Technology, such as 5G or artificial intelligence.

Hesitant and cautious is the atmosphere that enveloped the forum in Beijing this week. Many business leaders try not to appear to be defending or opposing either party. And some do not hesitate to criticize. Former US trade negotiator Charlene Barshefsky said that China has moved from “decades of opening and reform to mercantilism”, “massive subsidies, trade protection and infringement of intellectual property rights.” “.

Barshefsky also said that the relationship between the two leading economies in the world will still be challenging, whether or not the trade agreement. “Tension will still increase over time, as the United States and China increasingly confront each other,” she said.

This will make it difficult for thousands of businesses relying on the Chinese market to have billions of dollars in revenue. Foreign companies have been facing a lot of difficulties, as China has strongly supported Chinese businesses.