Editorial on Special Issue: “Global Trade Wars: A Case of Sino–US Trade War”

Abstract

In the 21st century, trade has been recognized as the most significant vehicle for accelerating the pace of growth and development for a country, irrespective of developed or developing in particular, and global economy, in general. Accordingly, trade disputes and wars that have come out as the biggest issues for the global trading system are a matter of great concern. This is because the very purpose of creating World Trade\nOrganization (WTO) is being defeated, that is “promotion of multilateral trading system”. Trade disputes and wars that are being combined with the “build up in leverage and higher asset unit values” may have emerged out as a deterrent to world trade and the same in turn may affect the existing global trading system to a greater extent. It has become sin-quo-non to have minimum possible trade wars among the major trading economies across the world. In the past decade, we have already seen that two contributory factors, namely leverage and asset prices, which were responsible for the 2008 crisis. The same situation has started coming up. Hence, the global leaders must pay attention on both the issues on war footing. Otherwise, the situation may become worse and out of control. It is an undisputed fact that world growth has been strong and sound during the last few years. However, on the one hand, the matter of concern for global players is how long it will remain strong and sound; on the other side, the persisting elevated asset price could be\njustified on the basis of strong and sound economic growth in general, world trade in particular, across the world.