What does the US-China trade war mean and its implications for the world economy?
The trade war between the United States and China, the world's two largest economies, is escalating from time to time to threaten the stability of the world economy, affecting the growth rate of international trade, manufacturing rates, capital flows and foreign direct investment.
A trade war means the imposition of customs duties between two or more countries with the aim of achieving economic benefits, protecting the national industry, raising export rates and imposing economic hegemony.
The gross domestic product [GDP] of the United States of America is about 19 trillion-one billion dollars, China's GDP is about 12 trillion dollars and the latter has been growing rapidly in recent years.
China said it would impose duties on a list of US imports, worth 60 billion dollars, between 5 and 25 percent for about 5,000 US products, and would come into effect on June 1, 2019, in response to a previous Washington Tariffs on Chinese products by up to 10% with a value of up to $ 200 billion.
China has the largest foreign exchange reserves in the world, with more than 3 trillion dollars, and the value of Beijing's gold reserves is 78.525 billion dollars, making it the most influential countries in the global economic decision.
China's influence in the global economy has increased with the release of belt and road guns and the growing size and influence of major Chinese companies, which is of concern to the United States.
The global economic growth rate is expected to fall to 2.9 percent in 2019 from 3 percent, due to rising risks of trade tensions and a decline in global trade and industrialization.
The trade war is affecting investors around the world, prompting financial markets and major stock indexes to fall due to uncertainties about the future of the global economy.
Investment in gold is a safe haven for investors in times of international crisis and in commercial war, where investment risk is lower compared to other currencies and investment instruments on the stock exchanges.
The US-China trade war is expected to continue and other customs duties will be imposed reciprocally as part of a war to impose control over the world economy.
The trade war affects growth, unemployment and corporate profits in many economies associated with the warring nations, raising the economic challenges facing emerging economies around the world.
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