Question

explain the causes and event of the trade war between China and US and what are the effects.

Answer 1

There are different causes and event of the trade war between China and USA. The first cause is the lack of trust and belief between the administration of USA and China. More specifically, the Trump administration takes populist view and tries to change the terms of international trade in the pursuit of Making America great again. It made the USA to ban the import of Chinese goods in their country and in retaliation the China also banned the certain US products into China. The second cause is the lack of proper balance made when trade negotiation took place between these two countries and it is viewpoint of the Mr. Trump that previous government were more liberal and gave many benefits to the China at the cost of the domestic industries in the USA. It led them to increase the tariff of Chinese goods or ban it and faced the similar retaliation from the Chinese counterpart. Due to this reason, multi-billion dollar trade is either lost or diverted to other nations. The events leading to the trade war, are the loss of jobs, closing of the factories, and China taking price advantage through pegging of its currency at depreciated value and dumping of good are the events, that made these countries to conflict each other’s.
Its effects are the opportunities created for the other nations who could wither provide goods and open the market for the goods of these countries. So, the trade war has also created opportunity and gain for other nations who could provide alternative arrangements.