'The West views China as a threat. It's irrational' - Dr Sizo Nkala, Centre for Africa-China Studies – UJ
Where does the trade war with China, launched by the United States, leave South Africa and other markets?
FILE: Tensions are high between China and the US. Picture: © rolffimages/123rf.com
702's Bongani Bingwa is joined by Dr Sizo Nkala, a research fellow at the University of Johannesburg Centre for Africa-China Studies.
Listen below:
The ongoing trade war between China and the United States has raised some serious concerns about the knock-on impact on the global economy.
Both nations have hit each other with hefty tariffs - 145% on most Chinese goods from the US and a retaliatory 125% on American products from China.
This back-and-forth has already taken a toll on trade, with US exports to China dropping by a massive 26.3% and China's exports to the US sliding by 8.5%.
With China positioned as South Africa's biggest trading partner, Bongani Bingwa asks what the impact of the trade war will be on Africa's largest, most developed economy.
Nkala says it will be hugely damaging to the global economy.
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"We are witnessing the two biggest economies in the world, they collectively control 43% of the global GDP, engaging in a full-scale trade war."
- Dr Sizo Nkala, Centre for Africa-China Studies - University of Johannesburg
"Businesses are evaluating the implications of the higher costs associated with disrupted supply chains which will dampen business investment and reduce appetite for business expansion."
- Dr Sizo Nkala, Centre for Africa-China Studies - University of Johannesburg
"About 120 countries in the world have China as their largest trading partner."
- Dr Sizo Nkala, Centre for Africa-China Studies - University of Johannesburg
China, which was admitted to the World Trade Organisation in 2001, has faced criticism for engaging in market-distorting practices and has been accused of 'gaming the system' in several ways.
Nkala suggests this could be the reason for the increased tariffs imposed by the US.
"I think there is some truth to that view and it partly explains the raised tariffs by the US. It's been a complaint raised not only by the US but also by the European Union.
- Dr Sizo Nkala, Centre for Africa-China Studies - University of Johannesburg
But are the tariffs justified, asks Bingwa.
"To an extent, I think it is, but I think the tariffs are also premised on the broader Chinese threat theory that has dominated the Western narrative on China for a long time...They view China as a threat... which is sometimes irrational..."
- Dr Sizo Nkala, Centre for Africa-China Studies - University of Johannesburg
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