US-China Trade War takes toll on their Global Competitiveness



BBC News

The world’s two biggest economies have become less competitive due to their ongoing trade war, which seems to have no short-term resolution in sight.

Both China and the US have slipped down the World Competitiveness Rankings for this year.

Smaller economies including Singapore, Denmark, and Switzerland top the list.

The Institute for Management Development (IMD) survey said their handling of the coronavirus pandemic helped strengthen their positions.

The US, the world’s biggest economy, slipped seven places to 10th, while China fell six places to 20th. The two economic superpowers have been locked in a trade war since 2018 with import taxes (tariffs) imposed on a wide range of goods.

The trade war has increased uncertainty for businesses, a factor weighing on both countries’ competitiveness. “Trade wars have damaged both China and the USA’s economies, reversing their positive growth trajectories,” the IMD said in its report.

To view the original article, please click here