In its last report issued on April 2019; The Arab Monetary Fund warns that the public and private debts are increasing globally, in parallel with the decline in the international trade growth rate(3.8% in 2018 compared to 5.8% in the previous year), which is mainly related to the low rate of maritime transport growth for less than 3%, on which 80% of the international merchandise trade relies, due to the decline in the global demand.
The newly issued tariffs yesterday (September 1st.) from both USA and China sides confirm that even if they are talking about a deal; the imposition of sanctions will continue. The pressures through tariffs on imports is threatening the stability of the international economy, and opens the way for other countries to imitate this model, effecting the legitimacy of the international arbitration and organizations as well.
The continued devaluation of the Chinese Yuan will affect the Chinese economy itself in the short term, due to the rising prices of energy and raw materials globally, China has not yet found a substitute even thinking of Africa now still limited in size. However, it increases the global demand for Chinese commodity exports and reduces imports, which will affect the rest of the world, especially small and medium-sized economies, such as; Vietnam, Indonesia and Bangladesh, who rely mainly on competitive prices of footwear and textile industry. India could also be greatly affected if it does not limit its imports, the Indian producers will not be able to compete with the Chinese commodity if prices become lower.
The trade war between the world's two largest economies has lasted too long than all predictions, this puts the global economy in a dangerous situation, by effecting the international economic growth, and rises the spill over of the unilateral acts with no coordination with the international economic organizations.
- Chan Chun Sing SINGAPORE MINISTER FOR TRADE AND INDUSTRY
Moreover, “if they get a deal, or whatever deal that they get ... I think the lack of strategic trust will be the more important factor”. This was a part from the Singapore Trade minister warning the world from the coming implications on US-Chinese relations and the international relationships in general. In fact, The continuous US-Chinese tariff war is accelerating the trend towards global chaos and anarchy. It is a huge threat to the stability of the global economy and society, demands a serious immediate international intervention and mediation.