Consider the current trade dispute between USA and China and answer the following questions. a) Explain...

Consider the current trade dispute between USA and China and answer the following questions.
a) Explain the factors that led up to the dispute?
b) Explain the steps that both countries have taken in response to the dispute?

Expert Solution

At present, there is a trade war between the US and China. Under which both the countries are adopting the policy of protection on each other's trade i.e. import export and have increased tarrif, custom duty etc., due to which both of their business have got problem.

It is alleged by the US that the dumping of cheap goods by China is done in America and the trade deficit of America is increasing continuously. Therefore, in order to reduce the trade deficit by the US, tariffs were first imposed on China's goods and custom duty was imposed.

According to the recent talks between the US and China, the US has convinced China that it will not dump goods and that China will import goods from America as well as trade deficit in the interest of America. Will be tried to reduce.

And the demand for the imposition of tarriff on some products and goods of China has also been put forward by the US, which has been accepted by China. Because China has a trade surplus with America. Therefore, it does not want to lose more than this, while the US wants to reduce the trade deficit slightly.

Rahul Sunny answered 1 year ago

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