Question

You are required to identify 5 actions taken by the US and another 5 taken by China in the trade war against each other which you think were instrumental and critical in this war. In your own words and in no more than 5 lines per item, explain why you believe this action was critical and how did / will it impact each country.

Answer 1

5 Action taken by United States which were instrumental and critical in trade war -

A. Raising of tariffs on the Chinese goods

B. Declaration of republic of China as currency manipulator

C. Ordering American company to look for alternative to China and invest into countries like India and other Asian country.

D. categorisation of various Chinese company as illegal and they were forced to either move out of America or being acquired by American companies like tiktok.

E. Providing for American companies with various incentives to establish their industry in America.

5 actions that were taken by China-

A. Retaliatory tariff increased on the American goods

B. Targeting of various specific segments which ware majorly exported out of United States economy to Chinese economy

C. Additional tariff on American goods which were increasing and compounding

D. Seeking of alternative to American goods and services

E. various food items were taxed additionally which were leading to direct implication on American economy .

These measures by both the economy were leading to direct implication of the total gross domestic product and it can be seen that these both countries are major trading partners and implication of a trade war can be lethal for both the economy as it can be seen that both the economies are facing to a large extent as American economy that's it has also gone in deficit along with the Chinese economy because they do not have much substitute and they are finding it very difficult in increased tariff scenario and they are still not able to reach a deal in order to eliminate the adverse impact of trade war .