THE IMPACT OF THE TRADE WAR BETWEEN CHINA AND THE USA ON THE WORLD ECONOMY
Abstract
The trade war between China and the USA has been a major source of global economic uncertainty since it began in July 2018. This paper examines the impact of the trade war on the world economy, focusing on the effects on global trade patterns, major industries, and emerging economies. The paper also discusses the potential solutions to the trade war and its long-term effects on the world economy. The key findings of the paper are that the trade war has led to higher costs on both sides, bilateral trade diversion, and a reduction in trade openness. The paper also finds that the trade war has had a negative impact on emerging economies, particularly those in Southeast Asia. The paper concludes by considering the gains and losses of both economies and questioning whether an all-out trade war is a rational strategy for either party.
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References
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