China Trade War With The United States
China's deteriorating relationship with its superpower rival, the United States, is a result of the raging trade battle. President Trump had been abhorring China's trade policies even before his tenure began. US-China relationship is one of the heated topics of the world, and here is why.
High Tariffs:
President Trump's rhetoric of 'fair trade' eventually came into action in 2017 when he officially launched an inquiry into the trade policies of China. The hostilities peaked further when the US imposed tariffs and sanctions on Chinese goods worth billions of dollars.
Both countries began negotiating, which resulted in an agreement for no new tariffs from the US. However, the optimism did not last long as the US imposed new tariffs on Chinese imports which is around
$200bn
worth of their products. In retaliation, China added $60bn of the US goods with tariffs.
Despite being embroiled in a battle of trade, both countries are still hoping to reach an agreement through bilateral talks. However, the current tariffs on Chinese goods are of worth more than
$250bn
.
The taxes inflicted affect a vast range of items ranging from industrial to consumer goods, which drastically increases the stakes. On the other hand, Beijing hiked the tariffs to
$110bn
of American imports.
David Scranton And Gordon Chang On China Trade War
But why tariffs?
Imposing tariffs on Chinese imports aims to promote the worth of local US products. It would make American items cheaper and increase their sales. However, it puts the global economy at stake if the world's two economic powers continue to dispute. The international monetary fund warned about the risks this trade war would incur, which could affect the global economic growth down by
3.7%
in 2019.
The China trade war is nowhere to the end; however, both the countries are representing their case at the
G20 summit
to reach an agreement, hopefully.
https://www.youtube.com/channel/UClXgIZAU6vp1zVSpS0775Ag/videos?disable_polymer=1