It seems like the battle between the US and China would not end so easily, and the impacts might severely affect the global markets. The fight between the US and China has further intensified after the APEC or Asia-Pacific Economic Cooperation Summit. The leaders of the Asia-Pacific were unable to bridge the gap between the US and China. The APEC leaders failed to agree in regard to the formal written declaration, and this has happened first time. According to the giant publishing house, the United States demanded that China wouldn’t be regarded as the developing nation under World Trade Organisation or WTO which would take away all the trade concessions which are being enjoyed by the country. The Chinese representatives also stated that no consensus was reached with respect to the trade issue.
The leaders were of the views that rather than the traditional leaders’ declaration, they would be leaving to the PNG as the chairman to give the statement on behalf of the members present which would reflect the agreement or consensus which emerged as a result of the discussions. The officials stated that the reports which said that the Chinese bureaucrats barged into the office of PNG or Papua New Guinea’s foreign minister for the demand of the changes in regard to communique was not correct. The Prime Minister of PNG named Peter O’Neill stated that he wasn’t frustrated or embarrassed because the consensus was not reached. He agreed that the battle between the world’s largest economies has been impacting the region and should come to an end.
Earlier, the Prime Minister of Australia, Scott Morrison, had stated that every day brings some optimism about the resolution of the trade war between the US and China. He also added that even though several commentary or discussions have been made, the practical elements which have been made clear by the member economies at the APEC is that they want these matters to get solved as soon as possible. Moreover, the resolution between the fights of the world’s largest economies might disrupt the global business environment which could hamper the economic growth. According to the President of China, that if we look back at the history, confrontations won’t be producing the winners. He also added that the efforts to raise the barriers as well as to cut the economic ties are not supportive to the laws of the economics as well as trends of history. He stated that there should be no unilateralism as well as protectionism.
On the other hand, the Vice President of the United States stated that it could go for additional tariffs. However, he also stated that the US is still hoping for better. Already the tariffs from both countries have impacted that global markets and the investors’ confidence. Any escalation at this point might further deteriorate the global business environment. If the investors’ sentiments get further impacted, the equities might witness significant outflows which might lead to the strong sell-off.
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