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The China-US Trade War Analysis

The China-US wars have been in the public domain for a considerable time. The

coordination between the two states has been further deteriorated by the plea to the allegiance by

conflicting fronts as most bloggers would have it. Thirty-five Chinese firms are already bearing

the burden, with the lead chipmaker Semiconductor Manufacturing International Company and

China National Offshore Oil Corporation top eight Chinese firms toping the chats. With the

November directive power play, two tech giants are likely to make the blacklist. This paper

performs a cost-benefit analysis of the potential move by Donald Trump's administration.

The military-run organization compromises the safety of the American citizen. The

security of data and personal information by the National Government is a top priority of the

state. The sanction of the abolishment of the firms from the New York Stock market is necessary

to minimize the access of financial market information by any foreign government. If the Trump

administration makes good their threat at all, then the confidentiality of the investors' details is

assured, and the government's financial secrets are further magnified.

The Chinese tech firms are reaping heavily off the United States market. The social

media tech and gaming tech firm registered a revenue loss in their home market alongside the e-

commerce platform Alibaba at 4.7 and 39 percent, respectively, as reported by the Hong Kong
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Stock Exchange. On the New York Stock Exchange, the e-commerce stock went up 5%. The

withdrawal of the already stable index will flaunt the stock market to reduce the GDP. Moreover,

the $1.3 trillion owed by the American investors majorly in both firms is likely to backpedal the

economy.

The ban on Huawei spurred the alienation of google from the Chinese market. It is

evident that the Chinese market, with the vast market they offer and low labor costs, is likely to

retaliate. The remarks by Hua Chunying, the Chinese Foreign Ministry spokeswoman to protect

the company's legitimate rights, will affect the sanction. Just as it had on google, the Chinese

government could restrict the operation of corresponding United States Firms, or the Chinese

could take the matter high up and sue the government for the trajectory undertaken. These

actions accredit one thing, losses to the investors, and decline of the country’s economy.

For example, the closure of both firms amongst associates, for instance, the WeChat and

Ant Group, is slowly crippling the industry. With it is the loss of jobs among in their American

Premise. Ant Group IPO is a direct link to the Alibaba operations. The retraction of both firms

among the 35 already kicked off the market will create a deficit in the gaming and social media

platforms. The services offered by the technocrats are also likely to spur the consumption of the

local competitors.

The blacklisting of the Chinese firms will also inspire the circulation of American

resources among domestic firms. The promotional and uptake of the local businesses' services

also create jobs for the American economy. In as much as jobs will be lost, others will be made.

It may not, however, equal the 600 billion dollar firms. Therefore, to ensure investors' security to

spur continued investment into the American economy and promote domestic consumption, the

government should consider restricting the operations of military run Chinese organizations.
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Works Cited

Alper, Alexandra, et al. "U.S. Considering Adding Alibaba, Tencent to China Investment Ban -

sources." U.S. 7 Jan. 2021, www.reuters.com/article/us-china-usa-alibaba-tencent/u-s-

considering-adding-alibaba-tencent-to-china-investment-ban-sources-

idUSKBN29C04Y.