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Is This the Head of the US-China Trade War?

Albeit US President Trump’s guarantee that the US is winning it’s trade war with China, the longstanding implications of the spat might last far after his presidency is finished.

After imposing $200 billion worth of tariffs on Chinese goods being imported in to the United States, President Trump has threatened to tax all imports the minute China would decide to retaliate in the latest episode of the US-China trade war. The billionaire chairman of Alibaba, Jack Ma, warned at an investor meeting that these tariffs would not long.

The international and American economists fear a new economic Cold War which will certainly last far long after Trump is out of office. Trump’s position has undoubtedly frustrated Beijing, which has promptly responded with its own levies on various American goods. This “diplomatic stalemate” has forced those in business policy communities to declare that America is in the protracted and severely economically crippling conflict with the world’s biggest producer of goods.

Long Time Coming

Former Prime Minister of Australia Kevin Rudd stated that Trump’s actions signaled

…the beginnings of a war of a different type: a trade war, an investment war and a technology war between the two great powers of the 21st century, with an uncertain landing point.

Jack Ma revoked a pledge to create one million jobs in America, on the basis that the agreement was made with the premise of a friendly US-China relationship, adding “trade is not a weapon.” China is poised to halt high level talks with Beijing until after midterm elections in November. Here, Xi Jinping might meet Trump at an economic summit in Buenos Aires, Argentina.

Aides of the President believe that the US has the upper hand on the China dispute, given the massive ability to impose high tariffs, under the premise that America imports far more than it exports. Trump’s trade approach remains highly popular with his voter base, despite the GOP’s uncertainty on his non-traditional mechanisms.

Trump’s Leverage

The Trump administration has kept close tabs on China’s various abuses, including (but certainly not limited to) theft of intellectual property, forced transfers of technology from foreign companies and sketchy joint venture agreements.

America’s alliances are also in question. Seemingly falling soft in issues like the South China Sea, where allies like the Philippines and Japan spat with the Chinese superpower that refuses to heed to UN arbitration, the trade war with China will show consequences much farther than we can see.

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