According to SCMP, American consumers and Chinese exporters are the two groups that suffer the most from trade war.
The latest report of the United Nations Conference on Trade and Development (Unctad) shows that many Chinese exporters have postponed the price reduction of goods until the second quarter of 2019, when they were forced to reduce prices. American goods are subject to a tax of about 8%.
In addition to the desperation of Chinese companies trying to grab market share, the report also pointed out that President Donald Trump's tax-incurring charges will also hit U.S. consumers, a ' losers' other in war wars.
|Chinese goods exported to the US decreased due to trade war. Photo: Chinatopix|
The study also shows that Chinese factories are currently struggling to get along, while the production price index, which reflects the average changes in the prices of all goods and Manufacturers' services, which have been declining consecutively for the past 3 months, have followed the slowdown in June.
In addition, the import of office machines from China to the US also decreased by 65%, equivalent to US $ 10 billion (about VND 230,000 billion) in the first half of 2019. Instead, US customers have sought alternative sources. another comes from Mexico, European Union, Japan.
The SCMP quoted the comments of former White House trade adviser Clete Willems, saying that the Trump administration is well aware that the proposed tariffs, effective on December 15, will greatly damage consumers. In the US, these taxes will be imposed on items such as IPhone and laptops. And this will make buyers become more reserved in spending.
|Many items such as IPhone and laptops from China are about to be imposed high taxes by the US. Photo: Reuters|
Meanwhile, China – the world's second largest economy with economic growth of only 6% in the third quarter of 2019. Export volumes have been falling for two months consecutively, while imports of 'billion-country' have declined continuously over the past several months. And with the economy playing an important role in the US presidential election next year, many observers think the weak economy and war will be a burden on the Beijing government.
"The Beijing government is unlikely to make the Chinese economy go up, and Chinese President Xi Jinping cannot deal with the tough challenges that come from Mr. Trump. Xi seems unlikely to prevent the trade competition from becoming a full-blown "cold war," the SCMP newspaper quoted political expert Willy Lam Wo-lap as saying.