US-China trade war: Global trade faces fallout as tensions continue to rise

US-China trade war: Global trade faces fallout as tensions continue to rise

Back in January, the world’s largest economies reached a truce after two years of tariffs and trade restrictions suppressing global growth. But global trade tensions threaten the economic recovery from the COVID-19 pandemic.

A poll conducted by the Washington-based Pew Research Center has found around two-thirds of Americans have a negative view of China.

This marks the highest proportion since the think tank began the survey back in 2005.

Since the coronavirus broke out in Wuhan, China, US President Donald Trump has continually repeated speculation that the deadly virus originated in a laboratory.

Secretary of State, Mike Pompeo, also claimed China “has a history of infecting the world”.

Global trade panic as US and China tensions grow

Global trade faces fallout as tensions continue to rise between the US and China (Image: Getty)

Trump and China's President Xi Jinping

Tensions grow between Donald Trump and Xi Jinping (Image: Getty)

Last week, Mr Trump threatened to “terminate” the trade agreement with China if they failed to buy $200bn (£162bn) more of US goods and services than in 2017.

On Thursday, Mr Trump said: “We signed a trade deal where they’re supposed to buy, and they’ve been buying a lot, but that now becomes secondary to what took place with the virus.

“The virus situation is not acceptable.”

Derek Scissors, a China analyst at the American Enterprise Institute in Washington, believes the tensions between the US and China will reach the peak in autumn, a few months before the Presidential elections.

READ MORE: Why is China in lockdown again? New coronavirus outbreak discovered

Donald Trump has blamed China for COVID-19

Donald Trump has continually blamed China for spreading the deadly coronavirus pandemic (Image: Getty)

He said: “The point of the deal was to give Trump political credit ahead of the election.

“September is the time when you’re going to have a lot of pressure on President Trump.

“The Chinese hope Trump yaps, yaps until the election and when the sanctions come, they only last a few months.”

Chief economist at Capital Economics, Paul Ashworth, agreed and said: “The odds are the election race will remain close until polling day, suggesting the Trump campaign will keep up the attacks on China as a means of shoring up the Republican voting base.

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US-China trade war

US-China trade war (Image: Express)

“We suspect Trump will stick mostly to threats. If evidence did emerge of a cover-up in China, that might embolden the administration to take firmer action, particularly if other countries were willing to add to the condemnation.”

Mr Trump has continually blamed China for the coronavirus outbreak and claimed the World Health Organisation (WHO) had been covering up the outbreak with the Chinese President, Xi Jinping.

During a virtual town hall meeting at the Lincoln Memorial in Washington DC, Trump blamed China for the global pandemic and accused them of a state cover-up after making a “horrible mistake”.

He said: “Well, I don’t think there’s any question about it. We wanted to go in, they didn’t want us to go in.

Trump lashed out at the WHO

Donald Trump claimed the WHO has been covering up the outbreak (Image: Getty)

“Things are coming out that are pretty compelling. I don’t think there’s any question.

“Personally, I think they made a horrible mistake, and they didn’t want to admit it.”

Mr Trump condemned the Communist nation for not alerting global leaders on the severity of the virus and said China failed to admit their mistakes.

He continued: “We wanted to go in, but they didn’t want us there.

Wuhan schools have begun to reopen

Schools in Wuhan have reopened following the Covid-19 lockdown (Image: Getty)

“Even World Health wanted to go in – they were admitted but much later, not immediately.

“They made a mistake, they tried to cover it, like a fire. They couldn’t put out the fire.

“What they really treated the world badly on, they stopped people from going into China but they didn’t stop people from going into the USA and all the rest of the world.

“They knew they had a problem, I think they were embarrassed by the problem.”

Wuhan schools reopen after Covid-19 lockdown

Pupils return to school in Wuhan after the coronavirus lockdown was lifted (Image: Getty)

China has faced increased scrutiny over its handling of the coronavirus outbreak amid cover-up claims.

Astonishingly, the communist regime has denied the origin of the COVID-19 virus was Wuhan at all, with the UK’s China ambassador refuting the suggestion this week.

Beijing’s chief diplomat in London Liu Xiaoming told the BBC’s HARDtalk: “It was first discovered in Wuhan but I can’t say it originated there because I would leave it to the scientists.

“We cannot say it originated from China. It can be found on aircraft carriers. It can even be found in the submarine.”

Published at Mon, 11 May 2020 17:44:00 +0000