Trade War Between US and China - Article

Running Head: TRADE WAR BETWEEN US AND CHINA
TRADE WAR BETWEEN US AND CHINA
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Introduction:
A trade war starts when a nation formulates policies to impose quotas or tariffs, on
imports. Also trade war can be attributed to the retaliation of foreign countries with policies
fostering trade protectionism. According to economists, trade protectionism does not only curb
the opportunities of trade between two countries, it also abolishes the chances of growth for other
ancillary industries operating in the global market. The overall negative impact is trade war
narrows down the expansion path of international trade. Further, a trade war induced by trade
protectionism also curbs the chances of the expansion of job opportunities as well as economic
transactions at the global level. The purpose of this study is to delve deep into the trade war
between China and United States of America. In this context this study will also throw lights on
the impacts of the trade war on the economy of United States as well as China. Eventually in the
process of estimating the impact of trade war on the economy of United States as well as China,
this study will reveal the policies as well as factors fuelling the trade war between China and
United States of America. With reference to the economic models and concepts this study will
further elaborate the policies implemented by United States as well as China
Overview, Reasons and Impacts the trade War :
The current trade deficit of United States is $621 billion. After the analysis of the trade
deficits since the year 1975, economists like Liu & Woo, (2018), considered that, $621 billion is
the highest trade deficit that the economy of United States have exhibited till now. According to
the economists like Bown, (2019)., the majority of the United States’ trade deficit can be
considered as the result of American enthusiasm regarding imported consumer goods as well as

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automobiles. In the year 2018, the country imported and spent $648 billion amount in the drugs,
clothing, as well as televisions along with household items. According to the economists like Li,
He & Lin, (2018), the export earning of United States was only $206 billion of the consumer
goods which was considered to add $442 billion alone to the trade deficit of the country. In the
same financial year the country imported automobiles as well as other parts of the vehicles and
also machineries of worth $372 billion, where as the export earnings from automobiles were
$159 billion. This was in turn responsible behind the addition of about $214 billion to country’s
trade deficit. Three major initiatives were implemented by Donald Trump to control trade deficit,
which in turn fuelled the trade war. According to the economists like Huang, Lin, Liu & Tang,
(2018), especially the policy that emphasized on the imposition of tariffs on Chinese imports, can
be considered one of the major factors responsible between the severe trade war between
America as well as China. Swanson, (2018), economists argued that that, there exists three main
factors that compelled the country of United States to initiate policies that instigated trade was
between United States and China. Firstly, the Chronically huge trade surplus of the country of
China, can be considered as one of those factors fuelling the trade war between China and United
States. According to Calì, (2018), the increasing rates of trade surplus is again, diminishing the
creation of job opportunities in the country. This is the reason why America has implemented
strict policies to impose tariff on good as well as services imported by China. Secondly, the
usage of unfair as well as illegal procedures by China can be considered as one of the major
reasons behind accelerating the trade war indirectly. According to Itakura, (2019), to China use
methods which are unfair as well as illegal to some extent for the purpose of adopting, imitating
and acquiring the technical advancement of United States at a large discounted price; which
enhances competition for United States and as Chinese products manufactured using the illegal

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methods or imitative technology enter the US market through imports. Again, according to
Hosain, & Hossain, (2019), this also curb the export earning of United States, as through
imitative technology acquired using illegal methods, China has become capable of capturing the
markets in the developing or under developed countries and US is losing market share in the
developing countries. Again, according to Moeller, (2018), the third factor is the weakening of
national security of United States, by China. According to Lukin, (2019), China also curbing the
international standard of United States. According to Caprotti, (2015), The second conclusion is
that China’s trade imbalance reflects the economic conditions in both China and U.S., and that
the efficient and fair solution of the problem requires policy changes in both countries.
According to economists, trade protectionism does not only curb the opportunities of trade
between two countries, it also abolishes the chances of growth for other ancillary industries
operating in the global market. The overall negative impact is trade war narrows down the
expansion path of international trade. Further, a trade war induced by trade protectionism also
curbs the chances of the expansion of job opportunities as well as economic transactions at the
global level. The purpose of this study is to delve deep into the trade war between China and
United States of America. In this context this study will also throw lights on the impacts of the
trade war on the economy of United States as well as China. Eventually in the process of
estimating the impact of trade war on the economy of United States as well as China, this study
will reveal the policies as well as factors fuelling the trade war between China and United States
of America.

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Economic and social policies implemented by the respective Governments (of USA and As per
the policies suggested by economists like some, it can be stated that, for the purpose of
elimination of the negative impacts of the trade war as well as making the outcomes mutually,
the country of United States. should adopt an approach which is comprehensive and fosters
negotiations. According to some the solution should be market-orientated. ‘Sheltering Arms’ is
the name of a nonprofit organization, in the Georgetown community, which is dedicated to raise
money so that retirement home for the seniors can be constructed. ‘Sheltering Arms’ is devoted
to provide seniors or older adults retirement home consisting of ample of opportunities for the
senior citizens to remain active and happy. This is because, the best way to maintain physical as
well as psychological balances during middle as well as older adulthood, is to remain active and
happy.The mission as well as vision of ‘Sheltering Arms’ is to look after the physical along with
mental well-being of those, who have stepped into their older-adulthood and let them enjoy their
retirement life to the fullest. Other objectives of ‘Sheltering Arms’ include providing security
and an ambience of support and care to the older people who are abandoned by their own
families. Precisely, it can be stated that, the nonprofit organization has vowed to enhance the
quality of life of the seniors in Georgetown community. ‘Sheltering Arms’ serves those, who
have stepped into their older-adulthood, but do not get enough care empathy from their families.
Also older people who are devoid of the opportunities to indulge in creative activities, or
preferred activities, hobbies to remain active, learn and explore the ‘retirement-life’ and hence
suffering from severe depression. Along with this, ‘Sheltering Arms’ also serves older people
who are abandoned by their own families.

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‘Sheltering Arms’ has planned to raise fund in order to provide retirement homes to the seniors.
Senior population in Canada represents nearly a major 4.8 billion of the total population of the
country. A major section of the seniors suffers from the anxiety, insecurity, loneliness
depression, homelessness. Many of the seniors are abandoned by their own families. Many of the
seniors are incapable of maintaining a balanced mental and physical health as they do not get
care support as well as opportunities to remain active happy. The old age trauma due to
depression, loneliness and unhappiness I s again increasing the rate of deaths due to heart attack,
among the older attacks. According to the economists like Li, He & Lin, (2018), the export
earning of United States was only $206 billion of the consumer goods which was considered to
add $442 billion alone to the trade deficit of the country. In the same financial year the country
imported automobiles as well as other parts of the vehicles and also machineries of worth $372
billion, where as the export earnings from automobiles were $159 billion. This was in turn
responsible behind the addition of about $214 billion to country’s trade deficit. Three major
initiatives were implemented by Donald Trump to control trade deficit, which in turn fuelled the
trade war. According to the economists like Huang, Lin, Liu & Tang, (2018), especially the
policy that emphasized on the imposition of tariffs on Chinese imports, can be considered one of
the major factors responsible between the severe trade war between America as well as China.
Swanson, (2018), economists argued that that, there exists three main factors that compelled the
country of United States to initiate policies that instigated trade was between United States and
China. Firstly, the Chronically huge trade surplus of the country of China, can be considered as
one of those factors fuelling the trade war between China and United States. According to Calì,
(2018), the increasing rates of trade surplus is again, diminishing the creation of job
opportunities in the country. A healthy older generation will contribute to the healthy population

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of the country. Again a healthy older generation will contribute substantially in the formation of
a healthy future generation by shaping the ideas perception and knowledge gained through
several years of experiencing life. This is the reason why ‘Sheltering Arms’ consider it very
essential to look after the physical as well as mental, well being of the elderly people by
providing them retirement homes with recreational, medical facilities, where there will be
caregivers to make provision for the homely atmosphere for elderly people. The fund is proposed
to be raised by arranging live events and social media contests. An event will be organized for
the purpose of raising the fund. The event will continue during two days. On the first day there
will be a concert where classical music artists from all over the world will folk together. Along
with this there will be a cake festival on the inauguration day. On the second day influential pop
starts will rock the stage. This will be followed by a standup comedy show, in which popular
comedians all over the world will be invited. In short, it can stated that , the event will be a
recreational event. Viewers from all over Canada will be able to enjoy the event will all the
members of their families. Further, there will be social media contest which will also help in the
accumulation of fund. It will be an appropriate event to raise fund. The banner, posters and the
online promotional trailers and teasers will disseminate the noble concern behind the
arrangement of the event along with the message that, this will be a family event. Family events
occur rarely now-a-days, most of the time recreational events focus on the recreation of young
generation. This is one of the factors which will help this recreational event to stand out in the
crowd. As, this event can be enjoyed with all the members of a family, this will facilitate in
family reunion, the older generation will get an opportunity to assimilate with the younger
generation. The boredom, loneliness and depression of the older generation will be minimized.
As a family event, it will assist in strengthening bonding between the members of a family.

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These are the unique features which will drag a huge range of the viewers. There will be tickets
of different price ranges for both the days of the event. The uniqueness of this event makes it
appropriate to drag the attention of families all over the country. Moreover, classical and pop
singers like - Measha Brueggergosman, Natalie Di Luccio, Sarah Slean, Justin Bieber, Shawn
Mendes, Avril Lavigne, Shania Twain. Along with the presence of comedians like- Laurie Elliot,
Russel Peters, Jeremy Hotz will fill the ambience with joy and laughter.
Moreover the event will be organized in Alix Goolden Performance Hall, one of the hotspots in
Canada allotted for live concerts. Further, a tie up with famous bakeries like- Baker's Best
Bakery, Forno Cultura, Blackbird, Baking Co., Duchess Bake Shop; will make the cake festival
on the inauguration day, a success. These are the unique factors which will make the event the
center of attraction for the visitors. According to the economists like Li, He & Lin, (2018), the
export earning of United States was only $206 billion of the consumer goods which was
considered to add $442 billion alone to the trade deficit of the country. In the same financial year
the country imported automobiles as well as other parts of the vehicles and also machineries of
worth $372 billion, where as the export earnings from automobiles were $159 billion. This was
in turn responsible behind the addition of about $214 billion to country’s trade deficit. Three
major initiatives were implemented by Donald Trump to control trade deficit, which in turn
fuelled the trade war.

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Effective promotion and sponsorship are the two significant challenges which will be
solved by utilizing the chances of social media promotion to the fullest and making sponsorship
appeals to famous brands like Lululemon Athletica,, Air Canada, Sun Life Financial. In return
this event will promote the brands assisting in sponsorship. The website which belong to the non-
profit organization, ‘Sheltering Arms’ this non- will publish information regarding the social
media contest. The subject of the social media contest will be designing promotional contents for
a large recreational event the motive of which is to gather funding for a noble cause. The noble
cause associated with retirement home for the seniors, will be elaborated in the official website
of ‘Sheltering Arms’. The participants will receive coupons for free entry to the cake festival
which is going to occur on the inauguration day. The best 20 promotional contents will be
rewarded with discounts to the tickets for the second day of the event on which pop music starts
and stand up comedians will illuminate the stage. The rewards to the winners of the online
contest will be distributed on the first day of the event. The social media contests will involve
preparation of # tag messages stories, accompanied by logo or other interesting visuals.
According to economists, trade protectionism does not only curb the opportunities of trade
between two countries, it also abolishes the chances of growth for other ancillary industries
operating in the global market. The overall negative impact is trade war narrows down the
expansion path of international trade. Further, a trade war induced by trade protectionism also
curbs the chances of the expansion of job opportunities as well as economic transactions at the
global level. According to the economists like Li, He & Lin, (2018), the export earning of United
States was only $206 billion of the consumer goods which was considered to add $442 billion
alone to the trade deficit of the country

9TRADE WAR BETWEEN US AND CHINA
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Amiti, M., Redding, S. J., & Weinstein, D. (2019). The impact of the 2018 trade war on US
prices and welfare (No. w25672). National Bureau of Economic Research.
Bown, C. (2019). US-China Trade War: The Guns of August. Trade and investment policy
watch.
Calì, M. (2018). The impact of the US-China trade war on East Asia. VoxEU. org, 16.
Caprotti, F. (2015). Golden sun, green economy: market security and the US/EU-China ‘solar
trade war’. Asian Geographer, 32(2), 99-115.
Cavallo, A., Cal, M., & Laski, A. (2019). The US–China Trade War.
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Hosain, M. D., & Hossain, M. S. (2019). US-China trade war: Was it really
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