As trade tensions between China and the U.S. escalate, economists warn of a domino effect that could destabilize global markets, trigger inflation spikes, and squeeze investor portfolios. Hong Hao, chief economist at GROW Investment Group, emphasized in a recent interview with CGTN that renewed tariffs or export restrictions would likely drive up bond yields, suppress equity valuations, and amplify currency volatility worldwide.
\"The real risk isn't just in trade numbers—it's in the uncertainty that freezes business decisions and tightens financial conditions,\" Hong stated, predicting \"substantial heat\" across currencies and bond markets. Analysts suggest tech supply chains, green energy sectors, and consumer goods may face immediate strain.
With both nations accounting for 40% of global GDP, the stakes extend beyond bilateral relations. Emerging markets reliant on Chinese manufacturing or U.S. demand could see growth forecasts slashed, while central banks grapple with inflationary pressures. Investors are advised to diversify portfolios and monitor policy shifts ahead of key diplomatic talks.
Reference(s):
Economist: China-US trade war escalation will hurt global markets
cgtn.com
