The U.S. agricultural belt, with its excessive influence in U.S. policy, has been China`s most whistleblower target for Trump`s tariffs. Agricultural exports grew relatively well before the trade war, but suffered.6 Unlike hard-hit U.S. producers, U.S. farmers received tens of billions of dollars in federal subsidies in 2018, 2019 and 2020. Agriculture accounts for only 22% of the products covered by the purchase obligations, less than a third of the size of the manufacturing industry. The Trump administration is announcing drastic tariffs on Chinese imports worth at least $50 billion in response to China`s alleged theft of technology and intellectual property. After tariffs on steel and aluminum imports, the measures target products such as clothing, footwear and electronics and limit some Chinese investment in the United States. In early April, China imposed retaliatory measures on a number of U.S. products, fuelling fears of a trade war between the world`s largest economies. The move strengthens President Trump`s action against China following high-level summits with President Xi in April and November 2017.
A conclusion drawn from the data is obvious. The Americans suffered when China`s retaliation devastated U.S. exports. Trump`s rate hikes have increased prices for U.S. consumers and costs for U.S. businesses. His politically motivated buying commitments may have caused more problems than they solved. After the election, the United States needs a new approach to solving its trade problems with China.
The parties strive to ensure fair, effective and non-discriminatory access to the other party`s service providers. To this end, the parties are taking specific action, starting with the measures outlined in this chapter with respect to the financial services sector. Economist Panos Mourdoukoutas explains that Chinese elites are fighting the trade war on the assumption that China had achieved “parity of power” with the United States and that an economic divorce between the two countries would certainly have some consequences for the United States, but would also be devastating for China.  While U.S. businesses and farmers welcome these commitments, China only agrees to make purchases for the next two years and what happens next is vague. The agreement stipulates that countries “progthea” that the increase in purchases would continue until 2025. The shopping list also leaves some questions unanswered: what will happen to China`s contracts with other countries for products such as soybeans? Will purchases distort commodity markets? “We hope that both sides will respect the agreement and seriously respect it.” At the beginning of July 2018, the economy had already posted negative and positive results due to tariffs, with a number of sectors recording employment growth, while others planned to lay off workers.  Regional commentators have found that consumer products are most likely to be affected by tariffs. The timing of the increase in costs was uncertain, as companies had to determine whether they could maintain a rate increase without bearing the costs to consumers.  Chinese leader Xi Jinping said in a message to Trump that the agreement was “beneficial to China, the United States and the world.” Xi also said the agreement shows that both countries can find appropriate and effective solutions to problems “on the basis of equality and mutual respect through dialogue and consultation.” Differences in security, ideology and development models weigh on Sino-Soviet relations. China`s policy of radical industrialization, known as a great leap forward, led the Soviet Union to withdraw its advisers in 1960. Disagreements culminated in the border conflicts of March 1969.
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