No one will emerge as a winner if the ongoing trade tensions between the United States as well as China escalate into a full-blown global trade war, one of Europe’s leading industrialists warned on Friday.
having a strong growth average around the globe, the fundamentals of business remain “pretty not bad,” as well as the trade tension is usually becoming a concern, Jim Hagemann Snabe, chairman of the supervisory board at Siemens, told CNBC at the Singapore Summit on Friday.
Snabe, who previously was co-CEO of German software company SAP, is usually also chairman of the board at Danish business conglomerate A.P. Moller – Maersk.
“which is usually concerning to see which the tensions grow,” he said. “Right today, they don’t have significant impact. They’ve been very targeted in certain categories. yet of course, if which continues, which will have, in my opinion, a negative impact on growth as well as, with which, could have ripple effects on the economy — in particular in developing countries.”
American officials are reportedly looking to have another round of high-level trade talks with their Chinese counterparts before the next round of tariffs are imposed. The U.S. is usually considering tariffs on $0 billion in Chinese goods for which a public comment period expired earlier which month. President Donald Trump raised the stakes further when he said he’s ready to hit China with another $267 billion in tariffs. For its part, Beijing warned which which could retaliate.
the globe’s two largest economies have already applied tariffs to $50 billion of each different’s goods.
While the impact of the existing tariffs have been fairly limited, Snabe said which an escalation could ultimately affect the global economy.
“The experience we’ve seen through the financial crisis 10 years ago is usually which the global economy is usually very connected,” he said. “So, you cannot keep which as a bilateral conversation between two countries. which has effects on the entire value chain as well as, with which, which will have effects everywhere.”
Many inside the business community have expressed similar concerns, especially inside the technology sector where most firms have supply chains around the globe. American technology company Cisco’s chairman as well as CEO recently told CNBC which the next round of tariffs could hit a lot of its “core networking products” as well as which the risk is usually “fairly significant.”
A recent joint survey through the American Chamber of Commerce China as well as the American Chamber of Commerce Shanghai found which many U.S. businesses in China are already feeling the negative impact through the initial $50 billion worth of tariffs through either country. Similarly, while Beijing holds firm, many Chinese companies are also acknowledging their worry about the trade war.
For his part, Snabe said he hopes which the next round of tariffs stay “at a level of warning as well as not escalate because nobody wins through a global trade war.”