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US ought to use reason to settle trade disputes

By Sikhumbuzo Zondi | China Daily | Updated: 2018-05-15 07:28

A trade war between the United States and China will also hurt Africa, because it will undermine growth not only in those two countries, but also in Africa as an emerging market, where Washington and Beijing both are competing for trade and investment.

In response to the US threat to impose tariffs on Chinese products, China has said it would do the same for US goods. This put pressure on manufacturing companies' shares, causing global stock markets to dip briefly. If the trade row escalates, Africa's economic growth would suffer, as a slowdown in the world economy due to a trade dispute will also harm African countries.

African economies are immensely reliant on a growing global economy, which in turn helps developing and developed countries to import more African resources. African economies, especially those that are big exporters of raw materials, have already experienced a slowdown due to the slowing growth of China, the largest importer of African commodities.

US ought to use reason to settle trade disputes

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