Trade confrontation between the United States of America and the People's Republic of China can have extremely negative consequences for the German economy. Such a warning was made by the head of the Federal Association of German Chambers of Commerce and Industry (DIHK) Eric Schweitzer (Eric Schweitzer) in an interview with the German publication Neue Osnabrücker Zeitung.
«The dispute between the two powerful economies of the world could have negative consequences for the German economy», Schweitzer said.
Against this backdrop, the expert pointed to the close economic ties that unite the German economy with the economies of the US and China.
«With both countries, Germany unites a turnover of about 170 billion euros each», the expert said.
In general, those 335 billion euros, which account for the combined turnover of Germany with the US and China, account for about 15 percent of the entire foreign trade balance of the FRG, he said.
Schweizer also stressed that both countries should follow the rules of the World Trade Organization (WTO). The latter concerns both the policy of the White House and the opportunities for competition in the Chinese economy, the analyst explained. According to Schweizer, the functions of the WTO should be significantly strengthened in order to resolve such trade disputes.
«After all, in the trade war there will be only those who will be defeated», Schweitzer, warned.
The day before, US President Donald Trump ordered the verification of China's economic practices in trade. Similarly, Trump's order contains an order to deal with Beijing's policy on US intellectual property. According to Trump, so he wants to achieve one of his key promises to protect American workers from losing jobs because of China's policy.
