Expert: Resolving US-China trade dispute vital to global economy

CNC
Added On October 30, 2019

INTRO
 
An American economist has said a solution to the trade dispute between the U.S. and China is vital to the two countries and the stability of the world economy.
 
PKG
 
Chad Hart, a longtime U.S.-China trade watcher, made the remarks in a recent interview with CNC.
 
SOUNDBITE 1(English): CHAD HART, Iowa State University:
"What I'm always encouraged by is that we continue to see representatives from the U.S. and China continuing to meet, because it's only through that dialogue can we figure out where common ground can be found... And so the idea is, the longer this dispute goes on, the larger the losses become. Because the idea is that the damage continues to accumulate."
   
Hart suggested both sides continue their efforts to have discussions to settle the dispute, though it may take long due to the complexity of the issues.
 
He said a settlement of U.S.-China trade rifts is crucial to the development of global trade and contributes to global growth as well.
 
SOUNDBITE(English): CHAD HART, Iowa State University:
"This is an issue not just for the two countries, but I would argue it's a global economic issue that right now has taken a significant bite out of global economic growth."
 
   
According to his calculations, the state of Iowa has suffered big losses in the trade frictions.
 
SOUNDBITE 3(English): CHAD HART, Iowa State University:
"We find that for the State of Iowa, the trade war has already created about 1 to 2 billion dollars loss to the state economy. As we look to the broader U.S. economy, that tells you that the scale of the event is probably in the tens of billions of dollars at this point, and that those losses continue to accumulate, because the longer this dispute goes on, the more damage that is being done to various industries that are being impacted here."
 
Hart said making the situation more complicated is that the U.S. administration also has economic disputes with several other countries, leading to a lot of trade uncertainty.
 
SOUNDBITE(English): CHAD HART, Iowa State University:
"President Trump has had trade disputes with several different countries and continues to right now. That has led to a lot of trade uncertainty, not only with just the U.S.-China relationship, but like I say, global trade right now is suffering due to this policy uncertainty."