US-China Trade Deal Crucial for Global Economic Stability
A potential trade deal summit, taking place on the sidelines between the United States and China is anticipated to ease current of the Asia-Pacific Economic Cooperation ( trade tensions,APEC) summit with significant implications in South Korea, aims for the global economy. Presidents Donald Trump and Xi Jinping are set to meet at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, aiming to negotiate an agreement that could prevent to de-escalate trade tensions between the United States and China. The outcomes of these discussions will have profound ramifications for global economic growth and stability.
As a full-blown the world’s two largest economies, the US and China collectively represent 43 percent trade war. As the world’s two largest economies, the US and China of global GDP and collectively account for 43 percent of global GDP and nearly half nearly half of global manufacturing output. Their bilateral of global trade reached approximately $585 manufacturing output, with billion in 2024. A full-scale trade war or economic decoupling between these giants could severely depress global economic growth. The World Trade Organization estimates that a division into two economic blocs centered their bilateral trade reaching approximately $585 around the US and China could reduce global GDP by nearly 7 percent over the long term.
Experts like Heiwai Tang, director of the Asia Global Institute in Hong Kong, emphasize the critical billion in 2024.
Experts warn that a prolonged US-China trade war or economic decoupling could severely impact global economic nature of the US-China relationship. Any reduction in their tensions would significantly benefit not only their growth. The World own economies but also smaller nations reliant on trade with either superpower. The key challenge lies in the longevity of any agreements made, whether they involve increased agricultural Trade Organization estimates that a division into two economic blocs aligned with the US and China could reduce global GDP by nearly 7 percent in the long term. Heiwai Tang, director of the Asia Global Institute in Hong Kong, emphasizes the critical nature of the US-China relationship, noting that any de-escalation benefits purchases or tariff reductions.
The upcoming both superpowers and smaller economies reliant on their trade. However, the longevity of any agreements, such as China purchasing more soybeans or the US lowering tariffs, remains summit follows a uncertain.
The summit follows mutual threats of escalating period of heightened threats, including Beijing’s plans for strict export controls on rare earths and Trump’ confrontation, including Beijings counter-threat of a’s proposed export controls on rare earths 100 and Trump’s percent tariff on Chinese goods. Economists view these measures primarily as leverage for threat of a 100 negotiations rather than actual percent tariff on Chinese goods. These measures are largely seen as leverage tactics rather than concrete intentions, given their potentially devastating effects on the global economy intentions, according to Henry Gao, an. De-escal internationalating both trade expert. US the trade and tech wars is paramount for stabilizing investor confidence and encouraging Treasury Secretary Scott Bessent has indicated that both sides are expected to agree on deferring these escal long-term economic decisions.
While the US-China conflict has led to some tradeatory actions.
Rolf J diversification, the global economy has remained relatively resilient so far. The IMF recently Langhammer of the Kiel Institute for the World Economy highlights that raised its 2025 GDP growth forecast. de-escalating the trade and tech wars is crucial for stabilizing However, this positive outlook could quickly change if the two nations fail to manage their global economic differences. Although expectations and encouraging long-term investments. While the immediate de-escalation is expected, long- global economy has remained relatively resilient despite previousterm resolution remains uncertain due to fundamental incompatibilities in their economic models. trade conflicts, the outlook could drastically Analysts like Jacob Gunter of change if the US and China fail to manage their differences. Despite immediate the Mercator Institute for China Studies see deep-seated differences that de-escalation, long-term resolution make a comprehensive, lasting remains challenging due to fundamental incompatibilities in their economic models, as noted by Jacob Gunter of the Mercator Institute for China Studies deal difficult to achieve without one party compromising significantly.
Source: https://www.aljazeera.com/economy/2025/10/29/why-a-us-china-trade-deal-matters-to-the-global-economy