Illustrative image (Source: VNA)Beijing (VNA) – The escalating US-China trade war has affected many othercountries, including Vietnam, said Prof. Liu Ying of the Chongyang Institutefor Financial Studies under the Renmin University of China.
Liu said that due to the worldeconomy’s demand, the US’ increase of tax rate applied on Chinese goods willpush production costs, thus countries having business and trade relations withthe US, including Vietnam, will be affected.
According to Liu, both China andVietnam should stimulate domestic consumption and foster economic and trade relationswith each other as well as with ASEAN countries.
Currently, China-ASEAN trade has exceeded500 billion USD, while the trade value between China and Vietnam has reached nearly150 billion USD with rapid growth, Liu noted.
Liu asserted that with the soundneighbourliness, China and Vietnam have good conditions to promote bilateraltrade ties.
Meanwhile, for the ASEAN, it isnecessary to enhance trade and financial cooperation by increasing investmentin infrastructure development, thus boosting the growth of the regionaleconomy, she said.
The expert said that the US has launchedtrade wars with China, Europe and Japan, which has hindered the development ofthe global trade and economy. The World Bank and the International MonetaryFund have both lowered the global economic growth in 2019.
Liu stressed that international tradeis an important motivation for the global economic growth, but the tradeunilateralism and protectionism have been curbing the trans-border capital flow.
In the first half of 2018, the flowof trans-bordercapital reduced by 41 percent, while the BalticDry Index, which reflects the world trade wealth, also droppedto 66 percent. Meanwhile, the US stock market is going down.
Liu underlined the need to roll outdrastic measures to end trade conflicts between the US and China – the twodriving forces of the world economic growth.-VNA
VNA
