Table of Contents
What can a trade war lead to?
Having to pay more for raw materials hurts manufacturers’ profit margins. As a result, trade wars can lead to price increases—with manufactured goods, in particular, becoming more expensive—sparking inflation in the local economy overall.
When did the US vs China trade war start?
The US-China trade war began in July 2018 under the administration of then-US president Donald Trump, eventually leading to tariffs on some US$550 billion of Chinese goods and US$185 billion of US goods.
How does the trade war affect China?
China exports more goods to the U.S. than to any other country in the world, and those exports have dropped by more than 12\% this year alone, he says. That drop has clearly hit the Chinese manufacturing sector. On top of the trade war, China’s economic growth has been slowing down for years.
What does the China-US trade war mean for the world?
The China-U.S. trade war is a tool for the rivalry between the world’s greatest economic powers –– the United States and China –– poised to dominate the first half of the 21st century. The outcome of these two’s economic row will shape the U.S. position as a world superpower alongside the U.S-endorsed international order.
Is the China-US trade war a result of geopolitical rivalry?
Yet, it is a result of structural geopolitical rivalries and will strike even more forcefully after the ongoing crisis is over. The China-U.S. trade war is a tool for the rivalry between the world’s greatest economic powers –– the United States and China –– poised to dominate the first half of the 21st century.
Why does the US-China trade agreement need strong enforcement?
This requires protection on both fronts — trade and investment — because both are critically important. The final US-China trade agreement meant to protect intellectual property will need strong enforcement teeth. Otherwise, we will lose the peace.
Should the United States pursue bilateral trade deals with China?
They require multilateral attention, either at the World Trade Organization or through engagement in trade deals like the Trans-Pacific Partnership. There is, however, one bilateral initiative that the United States should pursue with China: an investment treaty to protect intellectual property rights.