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China-US Trade Wars Derails Growth of Global Value Chains by 3-5 Years-UNDP

June 17, 2021 by Forex Winner Leave a Comment

China-US Trade Wars Derails Growth of Global Value Chains by 3-5 Years-UNDP

Source: Bloomberg

Continued trade wars between the US and China is costing global value chains about 3-5 years of growth.  SPY is down -0.56%, CSI 300 is up +0.42%, USDCNY is up +0.61%

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China-US Trade Wars Derails Growth of Global Value Chains by 3-5 Years-UNDP

The report by the United Nations Development Programme pokes holes on economic recovery in China and the Asia-Pacific region following trade wars.

UNDP says the absence of policies to curtail production sharing makes it costly for global value chain trade.

Washington and Beijing agreed on a partial trade deal last year, although China has shown little commitment.

UNDP also found restrictive trade policies put in place during the pandemic raising shocks in the global supply chain.

The UN body sees “significant potential” if countries work together through trade agreements.

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