Most of the economists have predicted that in the near future many global countries will get severely affected due to the Trade War between US and China. Reporters stated that countries like Japan, Taiwan and South Korea might suffer in the worst possible way.
During a recent press interview, Steve Cochrane said that several Asian economies viz. Japan, Taiwan and South Korea are the ones which have direct relation with Chinese economy. Steve also stated that Japan, Taiwan and South Korea also provide products to Chinese firms which are assembled together and then they are sent to the US consumer market.
In another news conference, Cochrane stated that those three economies have direct trade links with the Chinese economy. At present U.S. and China are dealing with Trade War. Back in May 2019, the tension of Trade War reached a whole new level when security as well as technology also got included. Due to this move, Washington had banned Huawei and now the company has to ask permission to do business in America.
Due to the present Trade War and heightened tensions since last month stocks of Japanese, Taiwanese and South Korean companies have registered a great plunge. This basically has taken place since all the three economies raised a considerable percentage of GDP by exporting goods to China.
At present, most of the economists are anticipating the outcome of G20 summit. In one of his interviews President Trump stated that he would decide whether he would levy additional tax on Chinese imported goods or not.
While speaking to the press John Woods sated that within three months everyone will know the decision of President Trump. He further stated that if the Trade War comes to an end then Asian markets will boom in a very short amount of time period. Moreover, he also warned that the Asian markets might face devastation if the Trade War doesn’t come to an end.
Alberto Strayer is World Industry Insights editor-in-chief. He is responsible for all business related editorial products. Alberto years ago, he joined World Industry Insight as a senior staff writer. Alberto spent the initial decade of his career with the publication covering business. Due to his efficiency and eye for detail, Alberto achieved the best performer of the year for consecutive 2 years. Alberto earned a Bachelor’s Degree in magazine production and editing. He loves to travel and explore the world in his free time.