US-China Trade War Continues to Pose Global Economic Challenges Amid Washington's Reorder Efforts
Published on 5.19.25
The recent developments in international relations have highlighted the complex dynamics at play between major global powers, particularly China and the United States. The ongoing US-China trade war continues to pose significant challenges for the world economy.
Despite a recent tariff reduction agreement between the two nations, economists warn that this does not change the bleak outlook if it fails to adapt to Washington's efforts to reorder trade with China and the rest of the world. The US has been pushing for structural reform in its economic alignment with China, citing concerns about economic security and policy.
China is taking steps to strengthen its economic cooperation with Europe, with Chinese electric vehicle giant BYD set to open a European center in Hungary, creating 2,000 new jobs. This move comes as the US-China trade war continues to have far-reaching implications for global markets, triggering instability and threatening supply chains.
Experts like Wendy Cutler believe that economic partnerships between nations are becoming more feasible, citing examples such as China's strong economy and large foreign exchange reserves which give it the financial resources to establish a market stabilisation fund. This would help reduce market volatility and protect small investors.
European Union officials are breathing a sigh of relief over the US-China tariff deal, which may delay a diversion of Chinese exports to Europe.