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    Trade dispute hurting global economy

    By ANDREW MOODY | China Daily | Updated: 2019-11-22 07:16
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    Bukola Ogunsina. [Photo provided to China Daily]

    Bukola Ogunsina, editor of the Sunday edition of the Leadership newspaper in Lagos, Nigeria, said her country continues to benefit from Chinese investment in vital infrastructure.

    "We would only be impacted if there was a global slowdown. In terms of trade, we are trying to build our own consumer market. Our president (Muhammadu Buhari) has a Made in Nigeria strategy, encouraging farmers to grow crops for the domestic market and not rely on imports," she said.

    The reasons and causes of the trade dispute are still being debated. Some believe it stems from a fear of the US being left behind in the technology race, with Chinese companies establishing dominance, such as Huawei in 5G mobile communications.

    Mok, at CCG, said: "The reaction to this seems sudden, but the cause has been there for some time. The US sees itself as needing to maintain absolute technological superiority to retain military hegemony."

    However, Moon at CMS has a different perspective.

    "American firms welcome competition, but they want a level playing field." China's new Foreign Investment Law, which was passed in March and will take effect in January, will allow more operating room for foreign companies in the Chinese market.

    Wang, at the EIU, believes the business environment in China has already improved.

    "This has been backed up in recent surveys by the European Union Chamber of Commerce in China and by AmCham (the American Chamber of Commerce in China). They talk about a big improvement in terms of the ease of doing business in China. The domestic market is more open than before and the timeline for opening up the financial market has been speeded up," she said.

    Whether such factors make it easier for a resolution of the trade dispute remains to be seen.

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