Win-win agreement only option for US, China, say S African experts

JOHANNESBURG - Reaching a win-win agreement is the only option to settle the United States-China trade frictions, South African experts have said recently.

"Our view is that these two must find an amicable solution as we can't afford a trade war," said South African National Civic Organization President Richard Mdakane.

China's position on the trade negotiations has always been about reaching such an agreement, said Farhana Paruk, campus principal of South Africa's Pearson Institute of Higher Education.

"Beijing's position on trade talks has never changed -- that cooperation serves the interests of both countries and conflict can only hurt both," said Paruk, also a scholar on China and Africa.

"China is willing to work with the United States to reach a mutually beneficial and win-win agreement," she added.

Mdakane warned that the effects of the trade frictions were already being felt, while Paruk also said the trade tensions have a negative impact on the world economy.

"The newly announced escalation in planned tariff increases is likely to have a more meaningful effect on global growth into 2019 than initial estimates suggested," said Paruk.

"With the expansion of tariffs, the risk of a greater disruption to globally integrated supply chains has increased, and prices are likely to rise," she added.