Article | The US-China trade war took a different turn sometime last year

INTERNATIONAL BUSINESS
The US-China War

INTERNATIONAL BUSINESS
The US-China trade war took a different turn sometime last year as the Us insisted on significant
changes in the Chinese laws to allow greater access to Chinese markets and protection of
intellectual property. The Chinese government, on the other hand, wanted the US to openly
accept pledges towards some of the issues mentioned above. Ideological differences and
resolving this issue sparkled the US-China trade war (Chen, 2014).
The war escalated to a very great extent last year. Scholars believed that the Us and China were
not being the only parties affected. Companies from both countries struggled to find their way
around the ever-increasing tariffs that these two countries were imposing on each other. It was
evident that as this war continued, there is no doubt that other countries as well will be drawn
into this conflict which has no probability of getting a winner This war took a different turn
when each of these countries started to shift its manufacturing venues to avoid the high imposed
tariffs. For instance, Enphase, a solar energy company based in California had to shift its
manufacturing to Mexico to avoid the high imposed tariffs. Likewise, Apple one of the most
established technology companies announced shifting its assembly point from China to India
(Ferrantino, Liu, Wang, 2012).
This trade war was a sensation in world news. Other countries were worried about the trade war
between China and the Us because globally, these two giants are considered as huge markers for
goods from all over the world. The issue of tariffs implied that businesses and local consumers
from either country will have reduced purchasing power. This is so because of the imposed
tariffs. As such, consumers had to pay more for all sorts of products.
Besides, the increased tariffs highly affected the demand for Chinese products whose
components are manufactured elsewhere other than China itself. This saw the spread of