What a US-China trade war would look like In recent years, Asian trading partners, such as China, have seen a massive increase in their trade surplus with the US, which has been grappling with widespread deindustrialisation and manufacturing layoffs. To get more China news, you can visit shine news official website. US President Donald Trump has taken up the issue and has promised to "bring jobs back to the US". In the first year of his presidency, he effectively commenced a trade war by imposing hefty tariffs on imports of foreign-made solar panels and washing machines, where China and South Korea have been world leaders.
Over the coming months, Washington is expected to up the ante by targeting rivals in hi-tech industries, with a particular focus on China's alleged intellectual property rights' theft. But the risk is an unwanted escalation of hostility that could burn bridges among nations. In its wish to "protect American jobs", the Trump administration could unleash a dangerous tit-for-tat dynamic among leading industrial nations. What is at stake isn't only an unprecedented era of economic globalisation, but also peace among major powers. In his highly anticipated speech at the World Economic Forum in Davos, Switzerland, Trump openly warned that his country "will no longer turn a blind eye to unfair economic practices" of other nations. Decades from now, Trump's speech could be remembered as the de facto declaration of the 21st-century global trade war. In particular, he focused on alleged "massive intellectual property theft, industrial subsidies and pervasive state-led economic planning" by rival nations. Though he fell short of naming names, it was more than obvious that he had state capitalist nations such as China in mind.Robert Lighthizer, Trump's hardline trade official, defended the imposition of 30 percent tariffs on selected foreign products as a clear indication that the new administration "will always defend American workers, farmers, ranchers, and businesses in this regard." The US International Trade Commission has determined that imports of solar panels and washing machines, for instance, have unfairly hurt domestic manufacturers.China, the world's leading trading nation, immediately shot back. The Chinese commerce ministry expressed "strong dissatisfaction" with Trump's latest trade measure for it "aggravates the global trade environment". The Asian powerhouse prodded the US to "exercise restraint in using trade restrictions", warning that it will not shirk from "resolutely defend[ing] its legitimate interests" if push comes to shove.
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June 2018
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