China, EU can propel multilateral trade

The trade war the United States has launched against China is having negative impacts on not only the two economies but also other economies, contributing to the uncertainty over global economic growth. The biggest threat of the trade friction, however, is that it represents a new approach to international trade negotiations - bilateralism - that is inefficient, divisive and unable to address new threats to the world economy.

China and the European Union, as major beneficiaries of the multilateral trading system, should take the lead in trying to save it.

The impacts of the trade war on China and the US have been limited so far. US tariff hikes have reduced Chinese exports to the US in key sectors (down 12 percent year-on-year in September 2019) and affected demand from China's suppliers across Asia.