Economic War between the United States of America and China
The economic war between the two countries began with the Trump campaign, in which Trump pledged to take measures to restore lost US jobs because of what he called China’s penetration and promised to impose customs duties on Chinese products. On March 22, 2018, Trump signed an executive memorandum to impose customs duties on Chinese imports. China responded on March 23, 2018, when the Chinese Ministry of Commerce announced plans to impose $ 3 billion in reprisal fees on US imports. On 2-4-2018, Customs duties on 28 products
On 6-6-2018, the United States began to enforce the imposition of tariffs on Chinese goods worth 34 billion and the fee is 25% and began implementation at midnight in the United States of America.
The reasons that led the US government to impose tariffs:
A way to reduce Chinese investment within America and restore lost American jobs.
To avenge China for the US intellectual property rights in the field of technology in return for the opening of Chinese markets for these products.
China is the largest foreign owner of the US Treasury bonds trillion and 200 billion dollars, it has about 1/5 American debt.
Trump asked the Chinese president to reduce the US trade deficit with China by 100 billion dollars immediately. The total trade deficit of the United States reached 800 billion dollars. Between China and the United States tends to favor China, and in 2017 China’s trade surplus with America exceeded 375 billion dollars.
The volume of trade exchange between the two countries exceeded 600 billion dollars in 2016.
US exports to China are $ 131 billion.
China exports US $ 506 billion.
Direct investment between 60 billion dollars China’s share of these investments in America is 46 billion while America’s share is 14 billion.
The United States imports in China aluminum, steel, electronics, clothing, household appliances, environmental supplies, solar panels and machinery.
China imports from America pork, wine, steel pipes, soybeans, automobiles, some chemicals, some kinds of aircraft, corn and other agricultural products.
These fees affect the growth of 0.6% of world trade and represent 0.1% of the world GDP.
The United States then imposed a 25 percent tax on 1,300 Chinese products worth $ 60 billion.
China imposed customs duties on 128 US products and the target product size of 50 billion dollars.
Who won the war?
There is no winner in trade wars. Everyone is threatened with loss. Both sides will try to make gains at the expense of the other. This will affect the global economic growth associated with free trade, as the economic campaign leads to a reduction in employment opportunities and higher prices for the consumer and is expected to be affected by major companies and exports The US soybean, which China relies on as a major source of food and imported from the United States by a large percentage). In addition, Chinese imports are used in American industries such as automobile industry and technology industries. Experts warn of a recession-like recession Which took place in 1929
This could lead to a collapse in global stock exchanges, a global banking crisis and an increase in global inflation as the world economy is open to each other in light of economic globalization.