The US and China are currently engaged in a trade war that could have ramifications for the entire global economy.
Israel, which has significant economic ties to both countries, is particularly vulnerable to a global trade war.
Legendary Israeli venture capitalist Erel Margalit told Business Insider that “the world’s development” hinges on China and the US finding a better way to coexist economically.
Margalit called economic development the most successful driver of social change in China, said it’s important that such development continues.
The US and China engaged in the first shots of a potential trade war last week when the Trump administration announced a 25% tariff worth $34 billion on Chinese products, including televisions, aircraft parts, nuclear reactors, and vehicles.
China responded later that day with $34 billion worth of tariffs of its own, primarily on agricultural products.
A full-blown global trade war could cost the world economy $470 billion by 2020, according to an analysis by Bloomberg Economics.
Meanwhile, one country with significant ties to both countries’ economies is looking on nervously.
Israel is particularly exposed to a global trade war. The country exports 30% of its GDP in goods and services and derives significant investment and growth for its booming …read more
Source:: Businessinsider – Life