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Effects of China and the USA trade

Introduction

In this year 2019, China and the USA trade war has escalated, which has brought about concerns.
Each country is raising its concerns and coming up with its demands. The USA has increased its
tariffs on imports from China and the latter doing the same. The US-China trade war has a
significant impact on the socioeconomic status of the two countries as displayed in projected
effects on business between the two, their local business performances and other vital economic
sectors such as agriculture.

Background of the war

US trade restrictions with China is based on President Trump’s trade protectionism agenda.

Supporting Points

Supporting Point #1. The restricted trade between US and China cause serious harm in
agricultural production.

A trade war with China would push up the cost of U.S. consumer goods, erode real wage growth
and probably hit farmers in Mr. Trump's rural base particularly Nathaniel Taplin, 2018.

The Virginia Department of Agriculture and Consumer Services (VDACS) has confirmed that
China is the Commonwealth's biggest export market for agricultural goods and suggested
President Trump's tariffs could hurt Virginia businesses and employees.

Supporting Point #2. China may suffer server losses due to potential competition to feel its exit
suppressed market in the United States.

Beijing believes that China's tech sector is in the early stages of development, and could suffer
from direct and open competition with foreign firms. Chi Lo.

Supporting Point #3 America may suffer severe job cuts as a result of deficit in supply of Chinas
products that play an important part in creating employment opportunities.

China is the Commonwealth's biggest export market for agricultural goods and suggested
President Trump's tariffs could hurt Virginia businesses and employees
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President Trump needs to work with us to find the best way to resolve these disputes and avoid
threatening an industry that creates thousands of new jobs and brings millions of dollars to rural
communities in Virginia.

Point #4 The war may scare investors from both sides of the war thus reducing economic growth
of the two countries.

Counter arguments

Counter argument #1 Although China may suffer from the trade wars, it has strong mechanisms
to counter economic disadvantages.

Market research estimates that a permanent 10 percent drop in China's exports to the United
States would cut Chinese GDP by about 0.3 percentage points. This is material, but can easily be
offset by domestic infrastructure spending and/or an increase in Chinese.

Counter argument #2 The trade war also provides China with an opportunity to explore other
valuable markets of the world.

Conclusion

The US-China trade war is set to cause undesirable socioeconomic impacts on both sides.
However, the America pose to experience more server effects.