The China–United States trade war.

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The world’s leading economic superpowers are locking horns. The game is on, trade war between US and China is here. For about past two years America and china have been trading goods with increasing tariff. impact of this has been felt across industries worldwide in good and bad ways, so what is the story about America china trade war?  Let’s try to understand.




For many years Chinese economy is boosting so fast, that it has now become a rival of US and also a threat to their position of superpower. 


After world war 1 , world war 2 and cold war with Russia, America is now going to face a very strong opponent which is china. Now let’s see how war experienced Americas new president, trump handles this situation.

Now Trump wants to contain china for which he is trying to start strong allies with many countries like India, Japan, and India’s first made in India product that is Pakistan .
In order to remain superpower, it is necessary for America to take actions against Chinese growth in all sectors and make it harder for china to trade and influence US market. While for china to compete America and become next superpower they have to keep their momentum and overcome any resistance by America. 
So, in this article let’s see how this war started and has affected global economy.

China has shown a dramatic economic rise. In 1978 china’s GDP was just 6% of that of America. While in 2018 it was observed to become 66% of American GDP.

In 1978 when china started increasing trades with world and soon became worlds factory. Many countries started importing from china including America.
 In 1988 America   became the country to import 15% of Chinese exports.
In 2001 china joined world trade organization with help of America they also said that china joining world trade organization was win win situation. Which would promote right kinds of changes in china.
But soon after joining world trade organization china had become economic superpower, but their dream was to become more like western capitalist economy.

This success of china was unbearable for America and they started claiming that Chinese success was by playing unfair. In 2016-17 America started working on a report to investigate economic practices of china and find out if china has done anything unfair which could be causing problems for American economy. 
They claimed that china was treating Chinese companies differently such that they had better competitive advantage with western companies.   In tech industries china was spotted spying and stealing tech from other countries for commercial purposes which was highly unfair.

In 2018 America imposed 25% tariffs on Chinese products. And then kept on increasing hence forth. With every rise in tariffs by America China also started increasing their tariffs. And since beginning of trade war china almost doubled their tariff rates while America tripled.  




The International Monetary Fund (IMF) said the escalation of US-China trade tension was one factor to have contributed to a "significantly weakened global expansion" late last year as it cut its 2019 global growth forecast.

Some countries may also be indirectly impacted - especially those that are important trading partners for the US or China - or play key roles in their supply chains.




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