MADRID, June 29, 2025
Economic Uncertainty Looms
Escalating U.S.-China trade tensions may trigger a global slowdown.
- Spanish households face economic worries due to inflation and rising costs.
- Economist Santiago Niño Becerra cautions about potential global economic paralysis.
- Becerra suggests China is currently winning the economic battle with the U.S.
Mounting economic uncertainty is casting a long shadow for many, and a potential global economic paralysis, driven by trade tensions, is what keeps experts on their toes.
Spiraling Concerns
Several factors are causing economic uncertainty among many: soaring inflation, rising food prices, and mortgage rates. Social conflicts that could impact the economy are also a concern.
Adding to this, the past April 2, Donald Trump announced tariffs on various countries, except for Russia, Belarus, Cuba, and North Korea, arguing these countries already face severe economic sanctions. This move is creating a confrontation with China and has led to a sharp stock market decline.
Expert Opinion
Santiago Niño Becerra, a Spanish economist, weighed in on the situation.
Becerra presented a chart from Standard’s & Poor’s, noting that one of the lowest points occurred during the 2008 crisis, when the stock market index stood at 735. The highest point reached 6,101 in 2025.
“We don’t have to worry at all, unless it drops 80%. But a 10% drop is of no importance (…) It has multiplied by 8.3 times. This is absurd, it makes no sense. There is only one reason, and that is speculation. All the money that central banks have injected into the economy for free in 2009, 2012 and 2018, with the pandemic has been injected into the stock markets,” the economist stated.
Potential economic Paralysis
Niño becerra detailed that things could worsen or improve: “If it gets worse with more tariffs and replications, what will happen is that in the summer we can reach a COVID situation: a paralysis of the world economy.”
The expert explained that his biggest concern is the lack of resolution to the situation: “That’s why I say that the COVID situation can arrive if the negotiation between China and the United States is stretched too much.”
China’s Economic Stance
The economist believes that China is currently winning this economic war: “It has more assets. It learned from American colonialism. It is indeed taking resources from South America and Africa, but it does things for them. It does works for them, it builds facilities for them. It compensates them.”
- Multiple things could cause economic issues for people.
- Tariffs on things could cause the economy to slow down.
- China may currently be winning the current economic stand off.
The China-U.S. Economic Battle: A Deeper Dive
As highlighted by economist Santiago Niño becerra, trade tensions between the U.S. and China pose a significant threat to the global economy. This rivalry, and the resulting policies, have far-reaching implications.
The central issue revolves around the economic and political dynamics between these two superpowers. China’s economic rise has altered the global landscape, leading to a power struggle with the U.S.,the previously undisputed economic leader.
The Roots of the Conflict
The core of this economic conflict is multifaceted. They include:
- Trade Imbalances: The U.S. has a substantial trade deficit with China. This means the U.S. imports far more goods from China than it exports.
- intellectual Property theft: The U.S. accuses China of intellectual property theft. This includes the theft of trade secrets, copyrights, and patents, which undermines American companies.
- Technology Supremacy: Both countries are vying for technological dominance. This includes competition in areas like artificial intelligence, 5G technology, and semiconductors.
- Geopolitical Influence: The competition extends beyond economics.The U.S. and China are rivals vying
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