The world stock market fell in general when China threatened 50 billion dollars on 1333 American products. China has repeatedly pointed out China does not want a trade war via its officially and unofficially channels.
China passively enters the trade war with the US since the US stroke the first attack on China; however, once China enters this trade war, China has to make its counter-strike on the US. The most immediate effect of this tension focuses on the stock market performance, since the trade war started, the stock market has fallen significantly, especially in the key industries' stocks. The long term effect of the trade war has not impacted the world economy since it only just started. The most recent job releases from many countries have been very pleasing, the unemployment rates in several key countries have fallen to the historical lowest points. The trade war is started by the increasing populism, and the increasing populism is started by the increasing wealth gap. The economic performance is constantly good but the benefits have not been distributed equally. Some governments want to turn the internal problem to be an external problem. This problem can lead to two kinds of outcomes. The first outcome is when the economy is not performing well, it can make people turn their attention back to the economic performance. The other outcome is when the economy is not performing well, it can make people more angry about their situations and want more extreme foreign policies.
To conclude, the current situation adds more uncertainty to the future world economy.
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