Tensions may badly damage confidence

Trade experts warn that the biggest challenge brought by trade tensions between China and the United States is the damage to confidence in bilateral trade, which may take years to restore.

Wang Huiyao, director of the Center of China and Globalization think tank, said that the trade tensions will lead to a no-win situation.

"It took years to recover from the financial crisis," he said. "The uncertainty and risk from a trade war will damage the confidence of entrepreneurs from both sides, and that may take years to restore."