Current State of Trade War Between USA and China

This presentation provides an overview of the current state of the trade war between the USA and China. It discusses the reasons behind the trade war, the tariffs imposed by both countries, and the potential impact on their economies. The presentation also includes information on the progress made in negotiations and the implications for other countries, such as Australia.

Current state of trade war between the
USA and China

TRADE WAR BETWEEN THE USA AND CHINA
 Trade war is a situation of creating restriction in trade.
 It results from conflict between two countries due to the various reason like political
conflict, economic issues, increasing tariff rate etc.
 The increasing tariff rate and other issues are the reason behind creating trade war
between the USA and China. US economy impose heavy tariffs on China because of its
illegal practices and or unfair practices.

TRAIFF IMPOSE
 To threatened the China economy US impose US$250 billion slapped tariff on
the Chinese product. Against of the US action china impose US$110 billion
tariff on the US products.
 Both countries are not willing to give up on increasing tariff rates which result
to creating trade war between two countries. And now US wants to increase
the Tariff rate up to US$300 billion.

CONTINUE
 The increasing tariff would result to impact on the import, export, foreign
direct investment, economic growth of both countries.
 In regard to the section 301 trade act 1974 US government gives a statement
that because of the unfair practice and theft of intellectual property right of
US, they increase the tariff.
 US threatened the china to increase the tariff rate by 25% if china is continued
to doing the unfair practices or if china fail to do the quick trade deal with US
to settled down their disputes.

CONTINUE
 On 6 July 2018 US impose 25% tariffs on some goods but on 9 July 2019 they
exempt 110 Chinese products from the 25% tariff rate.
 Further the commerce Secretary announced to issue licence to this company
which wants to sell products to Huawei.
 On 29 July US and China are agreed on discuss and talk about the trade war
and try to solve their issues.
 The aim is to hold the tit for tat tariff because it highly affects the business of
both country.

PROGRESS IN TRADE WAR
 On 30-31 July 2019 the talk of trade war is on little progress.
 The representative of two countries comes to talk about the tariff and negotiate
with trade rate and agreed with to conduct a meeting again in September.
 The talk of the US and China is around the import and export of the countries.
 The white house released a statement that China is agreed on increasing the
purchase of agriculture export of US but still they did not confirm the
agreement date.
 China also included a new member, Zhong Shan commerce minister in trade
negotiating meeting.

CONTINUE
 In the press conference US president
Donald Trump appeared to clarify
that they are holding back the tariff
because the different companies of
US are unhappy to not selling the
products of China like Chinese
smartphones.
 Whereas in past days US banned the
Chinese technology or product to
deal in US market.

CONTINUE
 In the meeting of 29 June 2019, US president Trump and China representative
Xi Jinping agreed that the prior tariff are remained in the position but they did
not impose any future tariff.
 Further, Trump announce that they permit the American companies to sell the
products to Huawai but the Huawai would remain in the trade blacklist of US.
 The 29 July meeting did not provide any idea or suggestion to remove the ban
on the Chinese companies.
 On 1 August 2019 US president Donald Trump announced on twitter that they
impose 10% additional tariff on the remained goods worth of US$300 billion.

Impact of the trade war between China and US on
Australia

CONTINUE
.

REFERENCES
Books and Journals
 Handley, K. and Limão, N., 2017. Policy uncertainty, trade, and welfare:
Theory and evidence for china and the united states. American Economic
Review, 107(9), pp.2731-83.
 Davis, C.L., Fuchs, A. and Johnson, K., 2019. State control and the effects of
foreign relations on bilateral trade. Journal of Conflict Resolution, 63(2),
pp.405-438.
 Katznelson, I. and Shefter, M. eds., 2018. Shaped by war and trade:
International influences on American political development (Vol. 79).
Princeton University Press.
 Cohn, T.H., 2016. Global political economy: Theory and practice. Routledge.
 Amiti, M., Redding, S.J. and Weinstein, D., 2019. CEP Discussion Paper No
1603 March 2019 The Impact of the 2018 Trade War on US Prices and
Welfare.