America VS China: why the trade war won’t end soon – Part One ( 1 / 2 )

America and China are locking horns, Game on here, trade war between the world’s leading superpowers is here. Over the past 18 months America and China have been trading blows through tariffs on goods, we are looking at 25% tariff on every single product that would come in from China !! and the impact is being felt on industries worldwide, but what is the story behind the America-China trade war?

The US doesn’t like that China is growing so fast, and set to overtake America as the biggest economy in the world, if it hasn’t already by certain measures. Basically China and the US are caught in this race of imposing tariffs on each other, so the US slaps a high tariff on certain products then China retaliates it’s multiple industries across multiple markets, And we think right now would be a really good time to look at what’s happened, how it could impact the world from now on ?

China’s economic rise has been dramatic, In 1978 China’s GDP at market prices was just 6% of America’s and last year it had grown to 66% ! and when considering local spending power China has already overtaken America, This unprecedented growth began with President Deng Xiaoping who started opening up China’s economy to the world in the end of the 70’s and the country quickly became “the world’s factory”.

After joining the WTO, China became an economic superpower, But people had expected the country to also become more like a Western capitalist economy bu that didn’t happen, America now claims that China achieved its growth by not playing fair. The Trump administration has been using tariffs or taxes on imported goods to try to force the Chinese to change their ways, In July 2018 America imposed tariffs of 25% on $34bn worth of Chinese products that almost doubled the average tariff rate on Chinese imports from 3.8% to 6.7% !.