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A. US China Trade War - Governments Response
A. US China Trade War - Governments Response
• Another response from U.S in trade war is to limit the transfer of U.S
technology to Chinese companies as many Chinese companies use
information technology and artificial intelligence systems from U.S
companies to manufacture their products. U.S imposed three tariffs on
Chinese goods which increase products price in U.S. (Huang 2018)
Response from U.S.A (cont.)
• China is huge market in solar equipments as it is world leader in this
industry. U.S responded in trade war by imposing tariffs on Chinese solar
systems and some other electronic products in 2018. In order to develop
negotiation on bilateral trade, U.S warned China for further tariffs to be
imposed if China does not respond to its demands (Liu 2018).
• In order to increase more pressure on China to have fair trade
agreement, Donald Trump impose another high tariff on Chinese
products in May’ 2019. This tariff increase is mainly in meat industry and
musical instruments (Kaur 2019).
• Response from U.S government in trade war with China is mainly to
discourage the local community and companies to buy Chinese products
in order to boost its local economy.
Response from U.S.A (cont..)
• U.S files legal case in World Trade Organization (WTO) against China so that
China could develop a policy of fair trade balance as per international
standards. This case highlights the subsidy given to Chinese government to its
companies in wind energy sector. U.S also files complain in WTO regarding
Beijing’s imposing of restrictions on payments through electronic means.
Other lawsuit in WTO is about giving too much subsidy to manufacturing
companies by Chinese government (Lee 2019).
• U.S also putting tough condition on China to join Trans- Pacific Partnership so
that China come on negotiation table with bilateral interests. Major condition
for China is to change its economy from export oriented to balanced trade
economy where export and imports of China have a balanced approach
(Huang 2018).
Response from China
• Kaur, A., & Gupta, G. (2019). An Insight into the Status QUO of US-
China Trade War. The Management Accountant Journal, 54(9), 81-
86.