US-China trade war may result in slow economic growth for developing countries

JOHANNESBURG – The University of Johannesburg (UJ)’s research fellow for Africa-China studies, Sizo Nkala, said the trade war between China and America would result in slow economic growth for developing countries.

The two major economies have been at a tit-for-tat exchange since the United States (US) imposed its 145% tariff on Chinese imports, with Beijing’s retaliatory 125% tariff hikes on American goods.

Nkala explained that the disrupted supply chain prompted by the trade war would impact businesses negatively as they will incur higher costs.

This, in effect, will lead to a decrease in business investment and appetite for expansion.

"China has got about 120 countries in the world that have China as their largest trading partner. So you imagine if the demand is reduced from China, it will result in a slow economic growth for those countries and the broader global economy as a whole."

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US-China trade war may result in slow economic growth for developing countries - expert

The two major economies have been at a tit-for-tat exchange since the US imposed its 145% tariff on Chinese imports with Beijing’s retaliatory 125% tariff hikes on American goods.