Question

In: Economics

What, in your opinion, did the US and China gain from this prolonged trade war? Elaborate....

What, in your opinion, did the US and China gain from this prolonged trade war? Elaborate.

(Tip: this question requires further research to form a well-structured

and rounded answer.)

Expert Solution

Both US particularly gained higher degree of domestic employment by boosting jobs and imposing tarriffs while China gained higher market share through devaluation of currency.

The biggest issue been surfaced is US China Trade War, Immigration Laws, US National Debt, Foreign Relations policy

US and china have great history of trade wars however recent times has been largely due to sanctions been imposed on china by USA.

Recently, USA slpped tarrifs on 40% of chinese goods. which has caused prices of US goods to go up substantially becuase cheap imports fro china have been stopped.USA has also stopped cheap imports of steel and as a result Chinese government too has imposed substantial tarrifs on USA goods.

As a result, there has been currency devaluation in China to make it goods look more cheaper and attractive and has started selling Goods in emerging markets. US goods however have become more costlier and hence sales have decreased.

Chinese government has aggravated trade war by imposing fresh round of tarrifs , however before G20 summit which will be held in 2018, such issues will be resolved.

Since, China has imposed tarrifs we see there has been lack of entry of chinese workrs and visas in USA which has nullified the clear cut winner. Because of trade war, India has managed to export steel and aluminium to US markets and hence has been the greatest beneficiary.

Given the Presidential Power following economic strategies need best case implementation :

Resolution of NAFTA deal with negotiation as well as maintenance of great relationships with South Korea on denuclearization by maintaining an eye on all developments
US China pact and removal of tarriffsby signing of MOU and economic cooperation
Immigration laws been relaxed by allowing H1B for Indians who look to create startups IN UsA and generate more employment
Debt refinancing and additional taxation on corporates with large market Capitalization to decrease debt in short term.
Increasing interest rates to appreciate dollar and control inflation and money supply in market

References:

Bailey, Martin Neil, What Happened to The Great American Job Machine!? The impact of trade and electronic Offshoring.

Cline, William R 2004. Trade policy and Global Poverty. Washington : Institute for International economics

Goldman Sachs, 2003. Dreaming with BRICS: the path to 2050. Goldman Sachs Global Economics paper 99

Zoelick, Robert B 2001. American Trade Leadership : What is at Stake? Speech before Institute of International Economics washing mton, September 24.

Schott, Jeffrey, 2004. Free trade agreements :US strategy and Priorities. Washington: Institute for International economics

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH ALL THE BEST IN FUTURE

Rahul Sunny answered 2 years ago

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as...

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as follows: i) Briefly elaborate the trade practices and their effects which the current U.S. President, Donald J. Trump claims are unfair such as the growing trade deficit, the theft of intellectual property, and the forced transfer of American technology to China from 2010 to present. ii) Analyze the outcomes of the China-U.S. Trade War and U.S.’s subsequent policies impacts to current China Business Environment...

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

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

If trade war continues with China, what is the impact on US good that competes with...

If trade war continues with China, what is the impact on US good that competes with Chinese imports, US employment in firms that are in competition against those of Chinese imports, and US corporations' profitability that ships intermediate goods made in China and convert them into finished goods?

8. The US and China as competitors seem to be engaged in a trade war. The...

8. The US and China as competitors seem to be engaged in a trade war. The bone of contention is tariff imposition from both the “warring” countries. i)What impact is expected on imports or exports by such tariff-imposition? Why? ii) What impact can tariffs possibly have on GDP growth of these two countries?

Discuss the recent trade war between the US and China. Describe what has happened in this...

Discuss the recent trade war between the US and China. Describe what has happened in this trade war, both in terms of policy changes on both the US and Chinese sides. Then discuss what you would recommend the US do in order to get China to change its trade policies with the US, particularly in terms of the requirements it puts on US firms wanting to do business in China (give them their technology, etc) and in terms of creating...

Discuss How ASEAN may benefit from the US China Trade War (250 words)

The Ongoing trade war between the US and China Does this represent a failure of the...

The Ongoing trade war between the US and China Does this represent a failure of the project of globalization? Is this a fight over trade or is it about geopolitical and strategic issues between the strongest and largest economies of the world?

What has taken place between the trade war between US and China since 2017 and what...

What has taken place between the trade war between US and China since 2017 and what does it mean for both the micro and macro perspective?

Imagine that the trade war between the US and China escalates, and spreads to other nations,...

Imagine that the trade war between the US and China escalates, and spreads to other nations, including Australia. Discuss the potential costs and benefits for the Australian economy (200 word limit).

there are some major trade war events between US and China during Trump administration. 1. What...

there are some major trade war events between US and China during Trump administration. 1. What are the institutional and resource-based explanations to these events? 3. How do you evaluate the status quo of trade disputes between the two countries? How can they overcome the present challenges and establish a better trade relations?