Question

An issue that is likely to affect the US (and global economy) right now are the trade negotiations that are going on between the United States and China. In a 2-page (double-spaced) essay, using at least one outside source, explain what is going on in these negotiations, and their potential effects on the US and global economies.

Answer 1

As we know that China has been performing unfair trade practises for long time. Some of the unfair trade practises undertaken by Chinese economy is dumping, forced technology transfer, intelluctual property theft etc. All these have led to destruction of many economies in the world.

Currently we know that there is still negotiations between US and China regarding the trade activities. US always stand against the unfair practises of China which is making US impossible to compete with the Chinese cheap products like steel and aluminium. Thus US have imposed tariff barriers and other trade barriers on Chinese goods to stop China from doing unfair trade practises. Even though US has done all these it is badly affecting the US economy and increasing trade deficit, forced transfer of technology from US to China.All these are pushing the US and other economies into bearish growth or slow down of economic growth.

To eliminate this situation US and China have signed several agrrements regarding trade. One was signed on 15 January,2020. Even though the economic conflict between the two countries was not able to erase completely. Thus even now the trade war is still continuing and is negatively impacting the industries, innovations,investment etc of the US and Chinese economy.

Thus we can say that the both economies is competing against each other to become powerful economies through trade. This is leading to further crash and destruction of these economies itself which will affect the global economy in the future. A complete solution to these problems are not applicable as we have seen that numerous negotiations have been taken place with US and China. But the trade relations between the both are getting worse because China is not ready to stop its unfair trade practises. So we can say that it will lead to massive destruction to other economies in the future.

In short, the above mentioned are the potential effects on US and other economies due to economic conflict between China and US.