US-China trade war is 'just a taste of what's to come,' expert says

00:00 Speaker A

China announced Friday that it volition rise tariffs connected US goods from 84% to 125%. It's the latest salvo successful an escalating commercialized warfare betwixt the world's 2 largest economies that has rattled markets and raised fears of a planetary slowdown. Joining america now, Isaac Stonefish, strategy risks laminitis and CEO. Um, Isaac, uh, it's been a small portion since we've talked, surely since this backmost and distant truly heated up here, and arsenic idiosyncratic who is simply a a adjacent pupil of this narration betwixt the US and China,

00:35 Speaker A

is it intolerable to foretell what happens next? What are what are immoderate of your champion guesses arsenic to however things make from here?

00:45 Isaac Stonefish

With the caveat that these person to beryllium guesses, I bash deliberation the recent, we are fundamentally astatine the bottommost wherever I deliberation things are going to spell successful the adjacent term. I bash deliberation the narration is going to devolve successful months, years. I deliberation this is conscionable a sensation of what's to come, but I bash consciousness similar with this roller coaster, we're going to spell down possibly a small spot more, and past relations volition improve. China volition travel to the negotiating table, the 2 sides volition perchance onslaught immoderate benignant of deal, and past six months, a year, 2 years later, things volition beryllium far, acold worse.

02:00 Speaker A

Isaac, I wonder, what bash you deliberation the risks are that Beijing starts to truly spell aft American companies, Isaac, that bash a batch of concern successful China? What what could that look like?

02:16 Isaac Stonefish

So, for folks who are successful the trenches there, they cognize that Beijing has been making it a precise inhospitable spot to bash concern for years, if not longer. And I bash deliberation you're right, I bash deliberation things could get rather worse. I deliberation what they could spot are taxation irregularities, permitting problems, harassment, arrest, torture of workers. And I bash privation to constituent out, for American companies, their Chinese unit are acold much vulnerable. And so, erstwhile Beijing targets individuals moving astatine American companies successful China, usually it's the Chinese employees who carnivore the brunt of it.

03:06 Speaker A

And Isaac, truthful you're an American CEO, you're proceeding this close now, you're listening to this. What bash you do, Isaac?

03:16 Isaac Stonefish

So, what you bash is threefold. You amended terms your China risk, which means looking astatine each of your partnerships with Chinese entities, your proviso chain, your associated ventures. You marque definite that you're taking attraction of your unit and you enactment information first, and you bash not enactment your Chinese unit successful a enactment of fire, and you travel up with a program for what happens if the US and China halt conscionable warring a commercialized warfare and person an existent war. What bash you bash successful that lawsuit to marque definite that you are protected, and that your concern tin spell connected not arsenic accustomed due to the fact that things would beryllium radically different, but that you person a program successful place.