A U.S.-China trade could hurt the export earnings of U.S. allies, including South Korea, Japan, and Canada. Experts say South Korea, Japan, and Taiwan would lose over 20 trillion won each in exports annually.
If China purchases additional American goods worth 1.35 trillion dollars over the next five years (2019-2024), it would cost Japan 28 billion dollars (3 percent of its export) annually, The Wall Street Journal reported Monday citing Barclays' analysis. It also said that South Korea would suffer a loss of 23 billion dollars (3.1 percent of its exports) annually.
Other U.S. allies, such as Canada and Australia, are also expected to be hit greatly by a U.S.-China trade deal as well. Canada is investing billions of dollars in Liquefied Natural Gas (LNG) facilities and Australia is the largest LNG supplier to China. It has been reported that Chinese state-owned oil company Sinopec is planning to buy 18 billion dollars of LNG from U.S. company Cheniere Energy.
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