US China Trade War - News Interns: Economic , International , Ranking, Pakistan News

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Wednesday, July 17, 2019

US China Trade War


US China Trade War | 
Who won in U.S-China trade war?

US and China. Here we'll understand who is winning the war and who's losing with the help of economic indicators. Well, both have always been the centre of attention for a long time. Both countries are acknowledged for their advancement. From a long past, U.S has continuously put efforts to maintain the No.1 slot. The products of the US are well known across the Globe for their product quality and lifespan. Moreover, U.S is the Superpower country having more rights to exercise than any other country in the Planet. Moreover, Silicon Valley is a global technological hub where thousand of talented brains work for millions of dollars to let the US stay ahead of the other 188 countries (especially China). Verily, U.S had enjoyed its tenure for decades. But a few months back a matter came in global headlines with the hot news of “US imposed 200% duty upon Chinese imports”. After a few days, the headlines came with a new victim of the same subject “US banned Huawei and Canada arrested Huawei’s CFO”. The spark of fire worked as on oil here and everywhere just within days from the stock market, exchange rates declined, the labour of respective countries got fired from their jobs, trade uncertainty gives born to new restrictions. Although today we can’t write the end of this story as the matter is still on the floor of discussion. But here we analyse the effects of this war on both countries till now. Who is winning this war currently?

Well in a recent meeting, World Trade Organization (WTO) has ruled against the US on tariff dispute with China. WTO declared US responsible for this war for its personal benefits and selfishness over the thrones. Moreover, the ruling would option China to take retaliatory measures against counterpart US if its prices were not accepted. In short, WTO ends this verdict in China’s favour.

CURRENT SITUATION:
GDP:

Well, China has always been discussed because of its double-digit GDP Growth Rate but this year China’s GDP growth rate has declined to 27 years low in the second quarter which is 6.2% which is no less than an alarming bell for China. Moreover, US is also on the edge of bad days because of its sanctions on the country it depends on the most.

Technology:

Recently Chinese based World’s 3rd biggest tech company Huawei faced heavy losses as android had banned Huawei from using its operating services. Moreover, the company has recorded 40% decline in overall Huawei’s sales due to the China-US war according to its founder. But in the long term, Huawei is going to be the first company in launching 5G Technology and becoming the next technology King.

Tariff:

US imposed heavy taxes on Chinese products upon the imports of $200 Billion. However, the total volume of Chinese imports to US stands at $539 Billion. While on the other side, China also imposed taxes upon importing of US products upon $110 Billion. US imposed tariff upon 37% of Chinese Products imported to US whereas, on the other side China levied heavy duties on 92% of US imports in retaliation. (BBC, Independent)

Who is winning the War?

Well its something out of the box both countries are imposing sanctions upon each other. But if we see the Imports and Exports table between both countries. It could be predicted that in the short term may be China gets affected but in the long term, US will definitely face the consequences of this silent war. U.S Dollar is also falling in international markets due to this uncertainty which is not only affecting the US but also the others as well. Moreover, the surging Gold and Oil prices are also somewhere having a relation to this warfare. The stock markets are declining these days due to uncertainty. Moreover, as relations are getting tough after both sides imposed tariffs on each other imports. America bans Huawei that further pushed the Chinese to strike back and now they came up with the ultimate threat to block the supply of rare earth minerals which are a key element in Technology, American based industries of Arms, Technology, Electronics, Glass, Renewable sector and many more. Apple and Tesla are two of the bigger names that will hurt these restrictions if imposed by China. As China is producing Globe’s 80% share of Rare Earth Minerals.

Conclusion:
 “When two elephants fight, it is the grass that suffers”. (African proverb)
Same with the conflictions between the two giants like US and China. Both want their rival to lose but both can’t live without each other. Nevertheless, America will suffer the highest consequences in the future because of the unavailability of supply and increasing demand. The authorities will do some table talks very soon to end this chaotic uncertainty. America should pay attention to “Don’t let the cat come out of the bag.” Whereas in the short run it may affect the economic growth of China, but again let me clear just in the short run.

This blog is
WRITTEN BY:
Muhammad Ahmad Zahid



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