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China and America still struggle under the trade war, both will be loser said by Alex Fan

出自香港新聞網 - 樹仁新傳系學生實習習作

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Reported by Leung Man Yee, published on 8th October 2019

Under the situation of the trade war, China and America both will be the loser; the industries in China may be transferred to Southeast Asia; America will be suffered from the high cost of the workforce said by Alex Fan, Vice Chairman of the China Money Magazine at the Hong Kong Shue Yan University.

The trade war between America and China has started for more than a year. Fan said the factories in China may be moved to Southeast Asia because people start a business in China with costly administrative costs, electricity bills, and water bills and now additional tariffs which all of them cause China to lose the advantages of start-up a factory. However compared to America, they have to pay more under the trade war, for example, it is impossible to have cheap labor again, said Fan.

Fan mentioned America and China can get benefits from each other in terms of the output goods; China can get advantages from the output of low technology industry like soy and pork, on the other hand, America can get advantage from the output of high technology industry like Apple iPhone. Therefore, they shouldn’t be the enemy that the enemy of America should be Europe.

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