"As the world's two largest economies, the US and China are unmatched in their influence on global stability and prosperity. Together, they account for 43 percent of global gross domestic product (GDP) and nearly half of global manufacturing output. Their two-way trade came to some $585bn in 2024 alone. A full-blown US-China trade war or decoupling would almost certainly have a severe negative impact on global economic growth."
"The World Trade Organization has estimated that the division of the world into two economic blocs pulled between the US and China would reduce global GDP by nearly 7 percent over the long term. The US-China relationship is the most important bilateral relationship, said Heiwai Tang, director of the Asia Global Institute in Hong Kong. Any de-escalation in their tension will have significant implications for themselves and more so for smaller economies that rely on trade with either of the superpowers, Tang told Al Jazeera."
The United States and China together account for 43 percent of global GDP and nearly half of global manufacturing output, with two-way trade about $585 billion in 2024. A full-blown trade war or economic decoupling would severely reduce global economic growth. The World Trade Organization estimates division into two economic blocs led by the US and China would cut global GDP by nearly 7 percent over the long term. A meeting of US and Chinese leaders at the APEC summit aims to lower trade tensions, but uncertainty remains over the durability of any agreements such as increased Chinese purchases or reduced US tariffs.
Read at www.aljazeera.com
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