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U.S-China trade war collapses global economic growth

Jonathan Josephs & Sameer Hashmi ’24, February 29, “US says falling trade with China could be positive,” BBC, accessed July 18, 2024, https://www.bbc.com/news/business-68441427

Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, told the BBC: "Upholding sound and steady growth of China-US economic and trade ties serves the fundamental interests of both countries and our peoples and is conducive to global economic growth."

Mr Liu added that the two sides should work together on global challenges and hoped the US would move "in the same direction".

In the build up to the meeting in Abu Dhabi, the Director-General of the World Trade Organization, Dr Ngozi Okonjo-Iweala told the BBC that the body was trying to help the US and China solve some of their differences.

Both countries are trying to grow their economic influence in parts of Africa and Asia as they try to secure access to natural resources and build resilience into supply chains.

It has led to growing concerns that the world is splitting in to two trading blocs and Dr Okonjo-Iweala warned that "we should be very careful, because if this continues, it could do real damage to the world economy".

A WTO study found such a division could cost the world economy 5% of its GDP. At a time when growth is struggling because of higher interest rates and inflation, she says, "that is huge".

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