The trade war between the United States and the People's Republic of China (PRC), where multilateral international obligations regarding tariff rates and non-tariff measures are at stake, results in shifts in global and regional trade in Asia. Emerging economies, such as Vietnam and Indonesia, seem to be winners, but China is looking for a proper response for American instruments. The change in the balance of power between the most important economies of the world: the USA, PRC and the European Union, which is a dynamic process in the long run, may lead to undermining the existing system guaranteed by the World Trade Organization (WTO).
ZBN Analysis No. 9 (48) / 2019
18 July 2019
The trade war between the United States and the People's Republic of China (PRC), where multilateral international obligations regarding tariff rates and non-tariff measures are at stake, results in shifts in global and regional trade in Asia. Emerging economies, such as Vietnam and Indonesia, seem to be winners, but China is looking for a proper response for American instruments. The change in the balance of power between the most important economies of the world: the USA, PRC and the European Union, which is a dynamic process in the long run, may lead to undermining the existing system guaranteed by the World Trade Organization (WTO). Against the background of disputes between the American and Chinese authorities, other processes relevant to world trade also take place, such as the growing number of free trade agreements, and mega-regional agreements such as ACFTA.
Photo: Paweł Frankowski