Baku. 9 July. REPORT.AZ/ Trade war accompanied by the introduction of mutual import duties between the US and China continues. Analytical Group of Report believes, if such processes continue, companies in other countries will suffer in addition to these countries and the growth rate in the world economy will decline sharply in 2020.
Although US President Donald Tramp's policy is designed to weaken the Chinese economy, it will have a negative impact on the business of US companies with China. According to experts, roughly half of the cost of production in China is directed to the US service sector. On the other hand, many technological products triggered in China belong to world brands. Toughening policy of US against Chinese goods may weaken sales of these brands.
The Chinese government may still reduce value of country's national currency as a way out of the situation. This step is crucial for preventing the economic downturn in the country and, most likely, we will witness the devaluation of Yuan in the coming months.