US China Tread War

The two big economies of the world are in a Tug of War on trade with each other. China
is the largest growing economy of the world and having a high level of trade with all over
the world including USA, on the other hand US having the strongest world economy.
As china is also the world largest populated country is searching for the more and more
resources. China is highly engaged with import and export.
The battle of trade became sharpen after that Trump came in power. Trump had been
expressed the reservation about china’s trading practices before he took office in 2016.
He called it the “Rape’ of US economy. Further MR Trump made his argument stronger
with “America first’ agenda.
Both countries imposed tariff with each other on different goods. The interesting one is
that both economic hubs claiming it a wining position for itself.
In January 2018 the president Trump place a 30% tariff on foreign solar panel. As china
is the largest solar panel manufacturer, in return china also imposed tariff on different
US products. World is observing this Tug of War into different angle. Both Trump's
tariffs on China and China's retaliatory tariffs are likely to impact the economy in
various ways. Firstly its causes the increase in prices of goods.
So far, the US has imposed three rounds of tariffs on Chinese goods, totaling more than
$250bn (£191.9bn). They cover a wide range of consumer and industrial items including
handbags, rice and railway equipment. Beijing has struck back. It's accused the US of
starting "the largest trade war in economic history" and imposed tariffs on $110bn
worth of American goods.
Whenever US placed the tariff on China’s products in reaction China also has taken the
same step. In recent president Trump talked about china, pointing that china may be
thinking for a negotiation with US on trade policy. But in response president XI didn’t
show any interest to talk about China –US trade policies.
The duties range from 10% to 25%. Mr. Trump has since threatened to hit another
$267bn worth of goods - meaning all Chinese imports could be subject to tariffs.
China's list of products subject to levies, which range from 5% to 25%,
includes chemicals, coal and medical equipment. The moves have been strategic,
targeting products made in Republican districts, and goods - like soybeans - that can be
purchased elsewhere.
It was an idea that may be US trade war policy is going to be changed after the mid-term
election outcomes, according to the resources of White House mid-term election is
unlikely to change the US China trade policy. Both Democratic and republicans support
a together the China trade policy. "It's going to be the same, if not worse, in terms of
U.S.-China," said Steven Okun of McLarty Associates.
After a long time china showed interest to talk with US on trade war, china remain to
talk with US on trade policy , a senior Chinese official break this news after the speech of
president XI, as He attacked on Donald Trump trade policy calling it “The law of
Jungle”. China is mainly ready to have a discussion with US on trade acceptable to both
sides.
With these polices the both countries has remained busy to create new markets for their
products. US pay its attention to Gulf countries, as Washington is having a big trade deal
with KSA. America also played a wide role to cool down the US conflicts with North
Korea. US trying to keep away China from the most East Asian market like Korea and
Japan .Washington also built close market relations with India and Singapore, these
both markets not having good relation with Beijing.

China is having a policy “one road one belt” with the Central Asia and Pakistan to
minimize the American access to these markets .Shanghai Cooperation Organization
(SCO) is playing a very important role in the region to make china’s policies stronger
against US. On the SCO platform china built a close relation with Russia. China is trying
to get access in South Asia and Arabian Sea through Pakistan. China is investing a huge
amount on China Pakistan Economic Corridor (CPEC). Through CPEC china will get a
road access to South Asia and Arabian Sea. China and Pakistan are deeply involved in a
struggle to run Gwader Port with is situated at the south most in Pakistan. Gwader is the
second world deepest port of the world directly connected with the Arabian Sea.
Washington is trying to sabotage this project through India, so there is uncertainty in
the province with people of Baluchistan and Govt of Pakistan. Recently china and
Pakistan sign an agreement that Pakistan will do trade with china in Yuan instead of
Dollar to put down the value of dolor in the market.
In this china US trade war the world has reservations about the globalization, as US
imposed tariff on the import of steel products which directly affected the European
market also because Europe also having a healthy trade with US in steel products .
After the initiative of Made in China 2025 US feeling more threats about its economy.
Against this policy president Trump is progressing his America First agenda. The Trump
administration said the tariffs were necessary to protect intellectual property of U.S.
businesses, and to help reduce the U.S. trade deficit with China. As a result, China has
filed counter requests for consultation against the United States, arguing that their
claims lack substantive evidence, and therefore do not have the legal authority to
respond based on World Trade Organization rules.
The world has deep eyes over the upcoming World Economic Forum (WEF) going to be
held at the end of this month. It is expected that may be this forum bring a turning point
for the both countries to come for a table talk. But there is dim sight that president
Trump shows any flexibility against china, as he got a support after the mid-term
election.

References:

Did you read Economist Who Called U.S.-China Trade War Sees Deal in 2019?

Did you read The U.S.-China Trade War and Global Economic Dominance?

Did you read what the US election results mean for Trump's trade war with

China?

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