Who is the real loser since the start of the U.S. - China trade war in 2018?
=> The U.S.
But ultimately both China and the U.S. lose as their GDP will shrink as imports and exports both crater.
=> The U.S.
But ultimately both China and the U.S. lose as their GDP will shrink as imports and exports both crater.
Also very important to know is that due to China not selling as much goods to the U.S., it will have no reason to buy U.S. treasuries anymore from the U.S., because it won't have excess dollars to buy treasuries. Since the trade war started, China has been selling U.S. treasuries.
The effect on Chinese growth is acceptable. China will still grow at an annual rate of 6% as we don't see a big decline in power consumption since the start of the tariffs in 2018.
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