Xinhua Headlines: Resolving U.S.-China trade dispute vital to global growth: trade watchers

Source: Xinhua| 2019-11-06 19:43:56|Editor: huaxia
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Calling for U.S.-China trade cooperation, analysts also warned that prolonged tensions can only create uncertainties, depress international investor confidence, compound the downward pressure on growth and increase the risk of global recession.


NEW YORK, Nov. 6 (Xinhua) -- Continuous efforts by the United States and China to resolve their trade dispute are vital to the two countries and to the stability of global economy, trade watchers have said.

"The longer this dispute goes on, the larger the losses become, because the damage continues to accumulate," Chad Hart, an agricultural economist who teaches at Iowa State University and a longtime U.S.-China trade watcher, told Xinhua.

Saying the U.S. trade dispute with China is "a global economic issue," which has ramifications worldwide, he called for a settlement to contribute to the promotion of global growth, since "the two countries have the two largest economies in the world."

Chad Hart, an agricultural economist who teaches at Iowa State University and a longtime U.S.-China trade watcher, receives an interview with Xinhua in Iowa State University in Ames of Iowa, the United States, Oct. 18, 2019. (Xinhua/Wang Ying)

GLOBAL IMPLICATIONS

Craig Allen, president of the U.S.-China Business Council, also noticed the significance of a sustainable U.S.-China collaboration to the world economy.

"If we do not cooperate, the rest of the world is going to suffer and we'll all suffer," Allen told Xinhua.

"We have to find a way for better cooperation," given the fact that the United States and China together account for about 40 percent of the global economy, he noted.

Grilled by uncertainties, U.S. businesses have voiced concerns about the ripple effects while urging a settlement.

Meanwhile, experts have cautioned against consequences of protectionism to the global prosperity, much of which they said is anchored in countries' ability to sell goods and services freely across borders.

Hart said the United States and China are just "both large enough that we can't completely block the other party out."

Stressing that the two countries "economically have a lot to offer to one another and the rest of the world," Matt Deppe, chief executive officer of the 10,000-member Iowa Cattlemen's Association, said they should make joint efforts to unlock cooperation potential.

Matt Deppe, chief executive officer of the Iowa Cattlemen's Association, receives an interview with Xinhua in Iowa, the United States, Oct. 17, 2019. (Xinhua/Wang Ying)

"POSITIVE STEP IN RIGHT DIRECTION"

The positive news that the United States and China achieved progress in their latest round of trade talks has renewed hopes for an eventual agreement.

Hart said he was encouraged to see representatives from the two sides continuing to meet.

"Because it's only through that dialogue can we figure out where common ground can be found," he added, while noticing that it may take a long time due to the complexity of the issues.

"It's a positive step in the right direction. I'm really glad to see both countries continue the discussion, because that's the first step in moving forward," said Pat McGonegle, chief executive officer of the 5,000-member Iowa Pork Producers Association.

"Our hope is (that) we get a great trade agreement for all different goods and services that are trading back and forth, because we think it's gonna benefit both countries," Deppe told Xinhua.

Pat McGonegle, chief executive officer of the Iowa Pork Producers Association, receives an interview in the association's office in Clive of Iowa, the United States, Oct. 17, 2019. (Xinhua/Wang Ying)

GREAT POTENTIAL FOR COOPERATION

Experts said that there is enormous potential in as well as an urgent need for U.S.-China trade collaboration in various sectors.

"Export markets are very valuable for U.S. agriculture," said Deppe, who has long watched the U.S.-China beef trade.

He said resolving the trade dispute is crucial to the local beef industry as businesses desire a larger share in the Chinese market after years of absence as a result of the detection of the mad cow disease in the United States.

China is one of the fastest-growing beef markets in the world. Calling China a relatively new market but with huge potential, the industry leader said he was bullish about the prospect for this market, where a large population diversifies the demands or business opportunities.

"Definitely, there's a lot of upward potential to trade more beef from the United States to China," he said.

In McGonegle's eyes, China is not only "a very important market force," but also "a dynamic and evolving market" for U.S. pork.

"The outlook is positive ... in the long term, there's a lot of opportunities in China," he said, basing his confidence on continued growth and household income increase in the Asian country.

Calling for U.S.-China trade cooperation, analysts also warned that prolonged tensions can only create uncertainties, depress international investor confidence, compound the downward pressure on growth and increase the risk of global recession.

Hart said that "the sheer scale" of the U.S.-China trade dispute, with "basically the entire trade portfolio between the two countries being in jeopardy," will produce unique challenges and unexpected consequences.

In its newly-released World Economic Outlook report last month, the International Monetary Fund lowered its global growth forecast for 2019 to 3.0 percent, warning that growth continues to be weakened by rising trade barriers and growing geopolitical tensions.

The disruption of global supply chains is already profound, and it may continue until a final deal is reached, they noted.

(Video reporters: Zhang Mocheng, Chang Yuan, Yang Shilong, Pan Lijun; Video editor: Liu Ruoshi)

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