GBUS4998 W01 Ling tong Pan
Ling tong Pan (Dan)
Topic: USA and China are All Loser in Trade War
In 2018, the trade war between China and USA is a big new. In recent years, China and USA are two biggest economic giants in the world, and there are many business activities between these two countries, China is one of the biggest exporters for America. However, in August 5th, Trump tweeted to start the trade war with China, he promised in his campaign to fix China’s longtime abuse of the broken international system and unfair practices, most of people think USA win this game. However, is USA completely victory?
There is no doubt that China gains a large lose. “The Yuan is down 8% against the dollar since April, and near its weakest in more than a year. A shrinking trade surplus produced a current-account deficit in the first half of 2018, China’s first such gap in at least two decades. More broadly, China’s growth is slowing at a time when America’s economy is expanding at its fastest pace since 2014″(“Is China losing the trade war against America? – Trump triumphant,” n.d.). After Trump announced the beginning of trade war, China loses one of the largest markets in the world, the increase of tariff surely decrease the business between two countries. However, not only China is the victim, America is also a sufferer.
From many news we can see American economy really raise a lot since the trade war start, many websites said America will win this game. However, China will not sit still waiting for death. “The Chinese government announced a list of possible tariffs ranging from 5% to 25% on $60 billion worth of U.S. agricultural, metal, and chemical goods. The tariffs would go into effect if the U.S. makes good on its threat to raise tariffs to 25% on some $200 billion worth of Chinese goods.”(“China to U.S.,” n.d.). If the USA still decide to continue trade war with China, it will also suffer a lot. After all, China is a big country and a big market, if China decides to raise the tariffs of American product, it will be a disaster for U.S. companies like APPLE, NIKE and so on.
As the Finance Secretary of the Philippines Carlos Dominguez said: “Trade War between USA-CHINA is a `Lose-Lose` Game”(“Business Insights: Global,” n.d.-a). The trade war will not only impact these two countries, but also influence other countries, it will do worse to the world development. Trump thinks the economic frustration is the fault of China, it is real a stupid idea, “The solution to economic frustration is to help American workers, not stifle trade with tariffs or protectionism.”(“In a trade war, no one wins,” 2016). We can see that, if there is no trade war between China and USA, Chinese companies are willing to start business in America. It will not only promote economic growth of USA, but also offer more works for worker in USA.
All in all, we should recommend that the China and USA should use the free trade strategy. “free trade fosters competition and encourages efficient use of resources, which lowers prices, enhances variety, and improves product quality for those goods demanded by consumers”(“Business Insights: Global,” n.d.-b). Only in this way can two countries can develop fast, it will benefit to the customers, businessman, and countries. Meanwhile, free trade will increase the good relationship between two giant to do well to there future.
Consumers Business Insights: Global. (n.d.-a). Retrieved September 9, 2018, from http://bi.galegroup.com.ezproxy.wku.edu.cn:2048/global/article/GALE|A543787432?u=cnwku;sid=summon
Business Insights: Global. (n.d.-b). Retrieved September 9, 2018, from http://bi.galegroup.com.ezproxy.wku.edu.cn:2048/global/article/GALE|A135886389/af004febc3b95fffb79767d7fa31144d?u=cnwku
China to U.S.: We Will Survive Your Trade War. (n.d.). Retrieved September 9, 2018, from http://fortune.com/2018/08/06/china-trade-war-defiance/
In a trade war, no one wins. (2016, Fall). Retrieved September 9, 2018, from http://link.galegroup.com.ezproxy.wku.edu.cn:2048/apps/doc/A470161266/OVIC?sid=googlescholar
Is China losing the trade war against America? – Trump triumphant. (n.d.). Retrieved September 9, 2018, from https://www.economist.com/finance-and-economics/2018/08/11/is-china-losing-the-trade-war-against-america