US-China trade war is poised to intensify: ‘Both sides think they have the upper hand’

The U.S. and China will continue their standoff in the ongoing tradewar as there is just not “enough pain” yet for either side to back off, an expert said on Monday. “I think we are in for a prolonged period of continuing escalating tensions,” said Deborah Elms, the executive director at the Asian Trade Centre, which is based in Singapore. One problem is that “both sides think they have the upper hand in this debate,” Elms told CNBC’s “Capital Connection.” Her comments came after the U.S. and China slapped new tariffs on each other last Thursday and their two-day meeting ended with no major breakthrough. She said the situation is likely to worsen in the months ahead through the U.S. midterm elections. “I think we don’t have enough pain in the system yet for either side to say, ‘Okay, I declare that we’ve got to have a different approach right now.’ That’s the challenge,” said Elms. Read more here