MAKALAH

“PERANG DAGANG AMERIKA DENGAN CINA”

DOSEN PEMBIMBING
Tursina Martiani, S.Pd

DISUSUN OLEH :

M. Yassar S. Ganda Danoari Gulo Rifki Abdul H.

Rizal Febriansyah Fajar M. Rizki Fadillah
Ahmad Jiddan Putri Rahmawati Siti Sayyidatunnisa
Naufal Ahmad S. Siti Ismayanti

UNIVERSITAS DJUANDA BOGOR

FAKULTAS ILMU SOSIAL DAN POLITIK
JURUSAN ILMU KOMUNIKASI
2018/ 2019
 PREFACE

Alhamdulillahi Robbil ‘Alamin, Praise be to Allah SWT, Lord of Hosts. For

all the gifts of His blessings so that I can make this paper as well as possible. The
paper entitled "AMERICAN TRADE WAR WITH CHINESE" was prepared in order
to fulfill one of the tasks of the English Language course taught by Ms. Tursina
Martiani, S.Pd.

Although it has been prepared to its full potential, the writer as an ordinary
human being realizes that this paper is far from perfect. Therefore the authors expect
constructive criticism and suggestions from all readers.

I hope that this paper can be a means of helping the public to understand the
trade war between the two major countries that affect other countries around it.

So what can I say, hopefully readers can benefit from this work.

Bogor, 28 October 2018

Writer

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 TABLE OF CONTENT

PREFACE ................................................................................................................. 2
TABLE OF CONTENT ............................................................................................ 3

CHAPTER I
INTRODUCTION .................................................................................. 4
1.1 Background of the Paper .................................................................. 4
1.2 Problem Formulation ........................................................................ 5
1.3 Purpose of The Paper ....................................................................... 6
1.4 Benefits of The Paper ....................................................................... 7
CHAPTER II
DISCUSION ........................................................................................... 8
2.1 Definition Of Trade War .................................................................. 9
2.2 Factor Affecting The American-Chinese Trade War........................ 10
2.3 The Impact Of The American-Chinense War .................................. 11
2.4 Regulation Applied by Each Other Country .................................... 12
2.5 Countries Affected by The American-Chinese Trade War .............. 13
CHAPTER III
COVER .................................................................................................. 14
3.1 Conclusion ........................................................................................ 15
3.2 Settlement ......................................................................................... 16
3.3 Mandate by President Joko Widodo ................................................. 17
3.4 What Should We Do ........................................................................ 18

BIBLIOGRAPHY ..................................................................................................... 19
APPENDIX PHOTO ................................................................................................. 20

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 CHAPTER I
INTRODUCTION
1.1 Background Of The Paper
Trade War, as we know war means dropping each other so that one can be a
winner and a trade that likens it to the one being traded to get money. Then why can
there be a trade war?

In the majority of cases, the consequences are mostly economic – trade

barriers are enacted, and then retaliatory measures are used to counter. Relations
can continue to escalate until an understanding can be reached by both parties.

In the minority of cases, trade wars can lead to world-changing

consequences. You may remember that the Boston Tea Party of 1773 was a bold
response to an unfair trade measure imposed by a ruling power, and it proved to
be a key catalyst that led to the American Revolution.

Meanwhile, the Opium Wars occurred after the Qing Dynasty (China)
tried to prevent British merchants from selling opium to the Chinese in the
1830s. These trade barriers led to armed conflicts, and effectively put the nail in
the coffin of the Qing Dyasty – the start of China’s infamous “Century Of
Humiliation”.

Here are some of the more interesting U.S. trade wars, and how they
compare to the current spat that is evolving with major trade partners:

1. Smoot-Hawley, 1930
Imposed during The Great Depression, the Smoot-Hawley Act is
almost universally recognized by economists and economic historians as
triggering a trade war that exacerbated the recovery.

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2. Chicken Friction, 1963
Factory farming of chicken in the U.S. ended up catching European
farmers off guard. French and German authorities responded by imposing
tariffs, and the U.S. then taxed imports such as trucks and brandy.

3. Jabs at Japan, 1981

Japan’s mid-century rise led to the country becoming an export
powerhouse. As Japanese cars flooded the U.S. market, intense pressure
eventually led to the signing of a Voluntary Export Restraint (VER)
agreement that limited sales in the United States. During this same timeframe,
the two countries also squabbled about other goods like electronics,
motorcycles, and semiconductors.

4. War of the Woods, 1982

The Canada-U.S. Softwood Lumber dispute kicked off in 1982, but it
inevitably resurfaces in the news every few years.

5. Pasta Spat, 1985

The U.S. was displeased with the level of access for citrus products
in Europe, and put a tariff on pasta products. Europe retaliated by taxing
walnuts and lemons from the States.

6. Battle of the Bananas, 1993

Another agricultural trade war, the Battle of the Bananas occurred
after Europe slapped tariffs on the import of Latin American bananas. Many
of these companies, owned by Americans, were not impressed. In response,
there were eight separate complaints filed to the World Trade Organization
(WTO). They weren’t resolved until 2012.

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 7. Steel Salvoes, 2002
These were the last major U.S. steel tariffs introduced before the
more recent ones. The goal was similar: to revive the steel industry in the
country. However, after a stability, jobs continued to decline. The European
Union responded by taxing oranges exported from Florida.

1.2 Problem Formulation

1 The impact of the trade war?
2 Are other countries affected by the trade war? Why ?
3 What regulations are applied by each country?
4 What things can we do about the trade war?

1.3 Purpose Of The Paper

As previously described, based on the background and formulation
of the problem above, the purpose of writing this paper is:
1) To find out what a trade war is.
2) To find out the impact caused by the trade war.
3) To discuss the method of settlement / mediation of the trade war
that occurred.

1.4 Benefit Of The Paper

The benefits of writing this paper are:
1. Understanding the Trade War.
2. Provide information about Trade War.
3. Knowing the impact of the Trade War.
4. How to deal with the Trade War and anticipate unilateral regulatory
changes.

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 CHAPTER II
DISCUSION

2.1 Definition Of Trade War

War shows that there is hostility or tension between two parties. Not
necessarily in the form of armed combat, war can also occur in an effort to maintain
and maintain the economic stability of a country. In this regard, trade wars can be
understood as economic tensions between two countries that previously worked
together or were tied up in trade relations.

More specifically, it is mentioned in the economic dictionary that trade war

is an economic conflict which is realized by the implementation of inter-state import
restriction policy. The import restrictions include increasing the import duty of goods,
prohibiting certain imported goods, making the standard of incoming goods higher,
certain items must be tested again and received additional certification, etc.

The purpose of this trade war is to harm the country's trade with each other.
Donald Trump's appeal regarding the escalation of import tariff duties on products
from China, especially steel and aluminum, triggered a trade war with the Bamboo
Curtain country.

Understandably, given the US is a market for steel and aluminum products

from China. That is, China is a steel supplier in the US market. China reacted to the
US president's call to do the same. China raised import tariff duties on US products,
mainly soybeans, wine and fruit. For the US, China is the largest market so that the
United States is the largest supplier for these products in China.

2.2 Factor Affecting The American-Chinese Trade War

President Donald Trump said he wanted to stop "unfair transfer of
American technology and intellectual property to China" and protect US
employment.

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 Import duties, in theory, will make US-made products cheaper than
imported ones, thus encouraging consumers to buy American-made goods. As a
result, this will increase local businesses and support the national economy.

But many US companies and industry groups have testified to the Office of
the US Trade Representative that their business has been harmed. There have been
signs that a number of companies have been affected, and the IMF has warned that a
major escalation in the economy will hit global growth.

Trump's tariff policy is part of his protectionist trade agenda since taking
office, which is contrary to the global free trade system that has been in force for
decades.

2.3 The Impact Of The American-Chinense War

a) China's Economic Growth Weakens

An important meeting by Chinese leaders after seeing official data that

China's business activity was stalled in July. This is the first official data after the
tariff war with the US. Give a signal that the trade war is starting to weaken China's
economic growth.

As CNBC wrote, throughout July 2018, the Caixin / Markit Purchasing

Manager's Index - which is closely watching China's economic activity - reached its
lowest point in 8 months. China's PMI data for July fell to 50.8, lower than 51.0 in
June.

"The data shows the negative impact of the first phase of the US tariff war
which came into force in July. Tariffs from the US have become obstacles, weighing
on investment and foreign demand for Chinese products," Julian Evans-Pritchard,
senior economist on China at Capital Economics.

Looking at the data, Chinese leaders held a meeting of the Chinese

Communist Party politburo and planned to take new steps in solving economic
problems. "The Chinese economy is facing several new problems and new
challenges," the Chinese government said, Xinhua news agency said.
Although it does not directly refer to the United States, China states that their
economic disruption is due to external problems, aka coming from abroad.

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b) For Indonesia, the trade war between the US and China will disrupt the
Indonesian export market

This has the potential to widen the trade deficit between Indonesia and
China. Because, China is looking for a market to distribute its products.

"The impact of US protectionism is the potential for increased imports of

steel and aluminum from China which has the potential to encourage the widening of
Indonesia's trade deficit with China from last year which reached a deficit of US $
12.7 billion," he explained.

c) Indonesia has export opportunities

As a result of the trade war, Indonesia has the potential to export goods to
both countries. Not only that, Indonesia can also be the third country to "take a share"
of Chinese and American exports. The trade war was considered Faith very complex.
One of the reasons initially was the growth of steel and aluminum commodities in
China.

"Indonesia can be the third country for some products produced by China or
America that use input from both countries, supply is hampered," said Iman in a
workshop in the Ministry of Trade auditorium, Jakarta. Some commodities that can
be exported by Indonesia, said Iman, are steel, aluminum, fruit and iron.

"The American market, for example steel and aluminum, is open to

Indonesia, but be careful. For the Chinese market for fruits and iron and steel
products, and aluminum, "he said.

d) The decline in Indonesia's raw material exports to China and America

The second is the decline in exports of raw materials or Indonesian auxiliary

materials to China and America. According to Faith, this happens if the scope of the
trade war extends to other products.

The first phase of the impact on Indonesia, the exports of both countries
have not been too large. Products produced by China and then exported to the United
States took relatively little raw material from Indonesia. Once the coverage is
expanded,

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 we need further study to what extent the impacts on exports for both
countries, "he explained.

e) There is a trade diversion that can be maximized by Indonesia

Due to market competition due to the trade war, trade diversion will occur.
This happened due to an intensive tariff reduction, for example Indonesia, which
previously always imported sugar from China, switched to importing sugar from
Thailand because it was cheaper.

"Products produced by China and America are hampered by high tariffs in

both countries and will find a way to other markets to all countries. Indonesia is one
of them. Including Africa and Latin America, "explained Faith.

2.4 Regulation Applied by Each Other Country

a) Regulation Applied by Each Other Country
Some of the products that are subject to excise include handbags, rice and
textiles. While items such as smart watches and high-size chairs are not included.

US companies that import Chinese products must pay an additional 10%

tax. Meanwhile, starting in 2019, the tax will increase to 25%, unless the two
countries reach an agreement.

Import duties of 10% -25% which will be effective starting September 24

will be applied to daily necessities, ranging from suitcases, tote bags, toilet paper, to
wool. Food products are also not subject to import duties, such as frozen meat,
various types of fish, soybeans, fruits, and rice.

US import duties on Chinese imported products initially included more than

6,000 types of goods, but as many as 300 later types were dropped from the list,
including smart watches, bicycle helmets and baby seats.

This change was made after strong protests by a number of companies,

including Apple, Dell, and Hewlett Packard Enterprise. These companies are worried
that the application of import duties will increase selling prices given that many of
their products are made in China

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b) China imposes 5% additional import duties on US products such as small
aircraft, computers and textiles, as well as an additional 10% on chemical products,
meat, wheat and wine.
The Chinese government had previously retaliated by imposing import
duties on US products worth US $ 50 billion. US products targeted are related to the
agricultural sector - which is the political base of President Trump.

China also plans to implement additional import duties on US products

worth US $ 60 billion. High-level meetings have been held in May, without a way
out. The Chinese government is reported to be rejecting new trade talks if President
Trump imposes a US $ 200 billion import duty on Chinese products.

Trump's economic adviser, Larry Kudlow, earlier said the White House was
ready to talk. "We are ready to negotiate and talk with China whenever they are ready
to carry out serious and substantive negotiations."

2.5 Countries Affected by The American-Chinese Trade War

1) Luxembourg
This small kingdom surrounded by Belgium, France and Germany
has the second highest GDP per capita in the world after Qatar. Its
main industries include banking, information services and steel.
Luxembourg is very dependent on trade, and makes it exposed to the
risks of the China and US disputes.

So what about Indonesia? According to Reuters data, it turns out

that Indonesia's position (with an export percentage of 43.5 percent) is
still quite safe compared to other ASEAN countries, and is below
Hong Kong, Israel and Australia.

2) Taiwan
Previously, on this list there were already two Asian Little
Dragons which were said to be prone to being affected by the Trade War,
namely Singapore and South Korea. Taiwan becomes a Small Dragon and
Asian countries which are predicted to be most severely affected by the
Trade War.

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 Taiwan is one of the most integrated economies at the global level
with a percentage of exports of 67.6 percent. The country's economy is
also the main national pillar. However, Taiwan is famous for being very
vulnerable when facing the global economic downturn.

3) Republik Slovakia
Just like Hungary, Slovakia depends on increasing exports. The
country which is famous for the Tartra Mountains has an export
percentage of 67.3 percent, and the Trade War can have a big impact.

4) Hungaria
The export contribution to the country's economy reached 65.1
percent. Hungary is very dependent on exports and makes it dependent on
foreign trade. Key industries in Hungary are agriculture, automotive, IT,
electronics and chemistry.

5) Republik Ceko
The country's export percentage is 64.7 percent. The country's trade
partners are European Union countries. Just like Ireland, this country is
very connected with high-tech engineering, making it so connected at the
global level.

6) Korea Selatan
The country of K-Pop is well-known as a strategic US partner in
terms of economic, geopolitical and business, and has an important role in
the denuclearization of North Korea.

Having an export percentage of 62.1 percent, South Korea's top

trading partners are Singapore, China and the US. Seen, two of them are
involved in the Trade War, and one is threatened.

7) Singapura
The contribution of exports to Singapore's economy reached 61.6
percent, and has an open economy. Recorded, the trade agreement
between China and Singapore reached more than USD 100 billion.

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8) Malaysia
Malaysia's neighbor country must be in eighth position because
the contribution of exports to the Malaysian economy reaches 60.4
percent.

In June, Mahathir also acknowledged the impact of the US and

Chinese trade wars on the world economy. China is Malaysia's biggest
trading partner. It is inevitable that the country's economy is vulnerable to
vulnerability due to a trade war.

9) Islandia
Export contribution to Iceland's economy reached 59.3 percent.
Small countries are generally sensitive to market volatility.

Icelandic industries include tourism, fish processing and aluminum

processing. Most of its exports are sent to the European Union, Japan and
the United States

10) Irlandia
The contribution of exports to the Irish economy reached 59.2
percent. This country is home to Google's headquarters in Europe located
in Dublin. Facebook also chose the city as its international headquarters.

The country known for Guinness beer relies on high-tech

businesses and financial services and has a high ranking in foreign
investment. It also causes it to be in a fragile position when the global
economy is volatile.

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 CHAPTER III
COVER

3.1 Conclusion
From the explanation or explanation above, the writer can conclude that in
accordance with the paper "American Trade War with China" the writer
concludes that war everywhere will not be beneficial to various parties and will
actually harm each other. This Trade War is very detrimental to the parties
involved in it, just because one party wants to put forward his egoism so that
economic shock in the countries involved can occur at any time.

With the action of counter-war trade warfare - retaliating against trade

forces will only destroy the economic stability between these countries so that it
will affect the people inside and outside the war.

3.2 Settlement
Director of the International Monetary Fund or IMF, Christine Lagarde
called on world leaders to improve the global trade system rather than try to tear it
down. This was conveyed as a form of criticism as well as a solution to the
rampant economic policies of nationalism and protectionism of several countries,
which then encouraged the implementation of high tariffs on a number of export-
import commodities.

This policy is clearly reflected in the trade wars of the United States and
China this year, where both reciprocated each other to install high tariffs on the
import of goods from each country. Responding to this, Lagarde said, "We must
work together to reduce and resolve current trade disputes," he said at the 2018
IMF-World Bank Meeting in Bali, Monday, October 8, 2018, as quoted from the
Economic Times (11/10/2018) .

"We need to join hands to improve the current trading system and try not to
destroy it," he added. Finance ministers and central bank governors from 189 IMF
member countries met in Bali this week where concerns about protectionism have
been at the center of attention - particularly the increasing trade war between the
United States and China, under the leadership of President Donald Trump and
President Xi Jinping.

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 Lagarde said he remained optimistic that disputes between countries could
be resolved. Uniquely, Lagarde provides an example of the success of the
renegotiation of the Trump administration over the North American Free Market
Agreement (NAFTA) between the US, Canada and Mexico recently.

"I see a clear desire to increase and expand trade," he said.

3.3 Mandate by President Joko Widodo

Earlier, at the WEF event in Hanoi, Vietnam, Wednesday (12/9), Jokowi
delivered a speech on the issue of Industry 4.0 and unlimited war. The speech was
delivered in a language that contained terms easily understood. The terms were
taken from a superhero film called The Avengers. Jokowi explained that currently
the world is heading to Industry 4.0 and an unlimited trade war.

"What is happening in the world economy today is that we are heading for a
borderless war. Trade wars erupt, with the intensity they have today," Jokowi said
at the National Convention Center in Hanoi, Vietnam on Wednesday (12/9).

"But rest assured, my Avengers and I are ready, to prevent Thanos who will
destroy half the world's population," said the number one in Indonesia.

3.4 What Should We Do?

1. Keep doing a positive approach

The first step is that Indonesia continues to take a positive

approach. "Our bilateral consultation consultation is prioritized over joining
trade wars," said Iman

2. Improve trade promotion

Indonesia must also continue to improve trade promotion. The

focus is on primary products and industrial products. "Or products with
added value. We manage imports better, "said Faith.

3. Accelerate competitiveness efforts, especially services

In addition to commodities for goods, Indonesia's service potential

is also quite good. Indonesia must accelerate competitiveness efforts. "The

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role of the national service sector for export and import. The potential of
services is very large, such as creative fields and applications. There are many
services but the scale is still small, "he said.

4. Accelerate trade negotiations

Iman also said Indonesia needed to accelerate trade negotiations

and maximize the existing Free Trade Agreement or Free Trade Agreement.
"We have formed 4 FTA Centers in 5 cities: Jakarta, Surabaya, Bandung,
Makassar and Medan to guide businesses to utilize the various FTAs," he said.

5. Open new market access so as not to depend on big players

According to Faith, Indonesia does not only want to maintain

market access to our traditional markets such as America, European Union,
Japan and others. But also opening new market access
.
"We also open new access to several regions, such as Africa. We
want to diversify export markets for goods and services. We don't want to
depend on big markets like Japan and America, "he said.

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Rizki Akbar Hasan. 2018. US Trade War vs. China Wobbly World Trade, This is the IMF Solution.
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BBC News Indonesia. 2018. Perang dagang: AS terapkan bea masuk ke produk Cina
bernilai hampir Rp3.000 triliun. Makalah. Dikutip dari
https://www.bbc.com/indonesia/dunia-45556484. diakses pada 30 Oktober 2018.

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Simulasi Kredit. - . Apa itu Perang Dagang? Berikut Pengaruh Perang Dagang!.
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Helmi Shemi. 2018. 3 Dampak Perang Dagang Amerika Vs China terhadap

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Tommy Kurnia. 2018. Perang Dagang AS Vs China, Ini 10 Negara yang Paling
Terancam. Dikutip dari https://www.liputan6.com/bisnis/read/3583120/perang-
dagang-as-vs-china-ini-10-negara-yang-paling-terancam. diakses pada 30 Oktober
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2018.

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 ATTACHMENT

SOURCE : www.tirto.id

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SOURCE : www.bbc.com

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SOURCE : www.bbc.com

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SOURCE : www.cnbcindonesia.com

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