"The direct impact of trade tensions on China’s economic growth in 2018 is expected to be limited at between 0.1 to 0.3 percentage points, according to economist estimates.
Liang Hong, chief economist at CICC, told CNBC on Friday that China’s plan to open up its markets “can stay on course,” with its economy growth target of 6.5 percent this year still within reach.
On the other hand, it is the U.S. economy that is expected to take more damage, according to analysts, who warned U.S. levies could affect American firms with investments in China. The world's largest economy would also be hit more considering that it is “pursuing trade wars on multiple fronts,” including its disagreements with Canada and the European Union, DBS said in a note.
“In each skirmish the U.S. targets different economies and consumers, but the retaliation from each counterpart falls on the same group of American consumers and businesses. The reckoning is in the pipeline, in our view," the note said....
"U.S. measures are essentially attacking global supply and value chains. To put it simply, the U.S. is opening fire on the entire world, including itself," said Chinese Commerce Ministry spokesman Gao Feng."
http://www.cnbc.com/2018/07/06/trade-war-worries-us-china-tariffs-to-kick-in-on-friday.html
| 