Question

analyze the topic, present and justify your own views .

The bilateral trade war between the U.S and China has lasted for over two years.

The issues mentioned in the trade war include trade imbalance, IPR protection state-owned enterprise (SOEs), and currency manipulation etc.

Please choose 2 of the above-mentioned issues, provide a brief explanation, comment on its role in the trade war.

Then answer the following questions:

What are the main causes of the conflict between the two countries? How trade-war develop in the future?

Answer 1

Ans.

Intellectual property rights, USA has been constantly bashing China for non-protection of IPR which means that Chinese companies doesn’t respect the patent on products by any company which makes their products cheaper because they do not have to do reasearch and development expenditure for the same. It increases the trade imbalances between USA and China as the product imported from China is cheaper.

Currency manipulation, time to time China has devalued its currency. This leads to decrease in cost of its exports while increase in cost of its imports, it reduces exports from USA and increases imports into USA again worsening the trade balance in USA.

The main causes of conflict between the two countries is the unfair means used by China to decrease the costs of its exports which leads to increase in trade deficit for USA. In future, the two countries have to settle for a negotiated contract because this trade war is hampering gloabal economy pulling countries into recession.

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