US-China Trade War: - What is the future prospects/issue? - Briefly outline your view(s) on this...

US-China Trade War:

- What is the future prospects/issue?

- Briefly outline your view(s) on this international issue.

Expert Solution

Trade War

Trade war is a situation where countries restrict each other by imposing tariff or quota on imports.

US China Trade war Issue

US started imposing tariffs on as much as 25 % on $ 34 billion in Chinese imports. China responded with retaliatory tariffs on 25% on US goods worth equivalent to $34 billion including soya bean, automobiles etc. All these events led to full fledged trade war having global implications .

Reasons

Imposition of tariff by US is to punish Beijing for restricting US investment in China.
US also accused China of stealing American intellectual property and Chinese firms imitating US technologies.

Prospects

Tariff and other steps damage the trade agreements under WTO.
Impact of trade war has global repercussions as it has weakened investment, depressed spending and growth rate of global economy has slowed down.

Views

As trade war has caused global slowdown, increase in protectionist policies which has raised prices and upended global supply chains, and has weakened trust in global rules based trading system, so both US and China should hold talks and deliberate on amicable resolution of the issue and should reach on a consensus.

Rahul Sunny answered 9 hours ago

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US-China Trade War: - What is the future prospects/issue? - Briefly outline your view(s) on this...

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