Beijing's weapons in battle and Why America waged a trade war on China
In the aftermath of the Cold War, the United States changed its policy and priorities and viewed China’s economic emergence as a major threat to its interests in the decades to come. Due to its rapid economic growth, technological advancement, and weapons development, China has become a future competitor to the United States.
China is a rival to the Americans and has been part of all major US strategies, and the trade war between the two sides shows us that Washington is taking effective steps against the threat posed by Beijing.
The concept of the trade war In defining the trade war, the author stated that it is the imposition of customs sanctions on imports of another country in response to the reciprocity of the other party, and this tax is imposed on imported goods and services, and this war begins if one country believes that the trade practices of another country are unfair.
The trade war is the result of a misunderstanding of the broad benefits of free trade. But this war is making foreign products more expensive and less favorable for domestic consumers to boost their consumption of domestic products. These tariffs are collected by employees and handed over to the government, which has a protectionist policy in order to protect domestic companies and jobs from foreign competition.
After exchanging threats over the past few months, the US and China imposed a 25 percent tariff on imports worth $ 34 billion.
China has called the move the start of “the biggest trade war in economic history.” This trade war could have an impact on the global economy and cause some damage.
Trump’s decisions are justified by unauthorized practices by China, such as forcing foreign companies to hand over the most valuable technology to Chinese state-owned companies in exchange for access to their markets. After the US sanctions took effect, China responded by imposing taxes on soybeans, cars, and lobsters among US goods.
According to a spokesman of the Chinese Ministry of Commerce, China is obliged to respond in order to protect the country’s basic national interests as well as the interests of the people. The United States will open fire to itself and the world as well.
US President Donald Trump has threatened to impose a 10 percent tax on another $ 200 billion in imports from China.
Looking at the repercussions of this trade war on the world, it could push the global economy to collapse, as well as the slow recovery of that economy afterward.
Extended effects outside The effects of this war may extend beyond the United States and China to other countries, and to the commercial arena and other areas beyond trade.
According to experts and economic analysts, a trade conflict between one superpower and other rising powers could create turmoil in global supply chains.
US consumers may have to pay more for products because of the supply chain disruption.
This trade confrontation between two foes in the 21st century could affect the world trading system, and it could be a cold trade war between the two countries, similar to the Cold War between the United States and the Soviet Union in the twentieth century.
China’s economic slowdown As for the Chinese economy, it is expected to witness fewer fluctuations than its American counterpart, especially as it becomes less dependent on exports, especially US ones.
However, the Chinese economic cycle is gradually slowing down, prompting the country to tighten financial conditions and try to control financial risks. The Chinese currency has fallen by about 4.3% against the dollar in the past few months.
During the same period, the dollar gained about 5% against several major transactions, but this did not in any way lead to an improvement in the trade balance, due to the fact that the United States creates uncertainty in the world, and as a result the dollar appreciates in the short term The flow of investments and lose the protection property dramatically.
The trade war will remove some jobs in the export sector to create some jobs in competing for import sectors, which would be a bad effect overall.
Trump is betting that a policy of militancy toward China will make political gains over the long term, but both sides will lose because of higher import prices, shrinking exports and stunting economic growth. Advertising
Weapons of China The author offered some options that China could take to avenge the US-led war. Ultimately, its imports of US goods do not exceed $ 130 billion a year, while $ 500 billion in exports to the Trump-led country. China has a range of weapons it can use to confront the Americans.
Beijing should conduct trade in its own currency, especially after Pakistani Prime Minister Imran Khan Niazi’s proposal to conduct trade with the yuan instead of the dollar.
Such a move would be a direct and indirect blow to the United States, its allies and the dollar as a whole, especially as China is a major source of $ 2,263 trillion in transactions.
If China succeeds in buying oil in yuan, the dollar or it’s market value will at least decrease. China can trade with a number of countries by yuan. A depreciation of the dollar would also bring the World Bank and the International Monetary Fund to collapse.
China should check US companies in China and seek a balance sheet. They can also disrupt them by withholding licenses, conducting tax, antitrust, or other investigations.
State-owned media play a major role in promoting this trend, especially since they have already launched a boycott campaign for Japanese and South Korean products.
Beijing could also seek support from allies of the United States and other countries, especially as Trump’s unilateral actions to counter China allowed it to install itself as a defender of free trade.
China has sought to recruit European and other governments as allies, but it has not succeeded. In contrast, political analysts stress that Beijing’s intention to impose sanctions on North Korea will discourage the Chinese government’s efforts to cooperate with other governments.
The United States and China will be equally affected, as their trade war threatens the rules-based global trading system, and could isolate the US, which has refused to reach a serious settlement and resolve its differences.
Source: Websites