US-CHINA TRADE WAR.The world two-largest economies China and United States

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US-CHINA TRADE WAR

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Introduction
The world two-largest economies China and United States are undergoing an economic
conflict termed as trade war. In 1984, US became China’s third largest trading partner and
China became America’s 14th largest trading partner. Both the nations have signed a US-
China Relations Act in 2000, establishing a healthy trade relation between the nations and
granting China to join the World Trade Organisation, also defined the China with a status of
most favoured nation (Congress.Gov, 2000). Due to the unfair trade practices of the China,
US imposed tariffs in order to force the China to make changes in work as per the US says.
The unfair trade practices of China such as forced transfer of US technology to China and the
theft of American Intellectual Property have resulted in growing trade deficit and the trade
war between the two economic giants have affected both the nations along with other nations
of the world (Council on Foreign Relations, 2019).
US-China Conflict
US started imposing the tariff on the products after the China started exporting subsided
products in American market, and competing with such products become difficult for the
American companies and the President Trump of US claimed that China has manipulated
their currency, and imposing tariff is the only option in order to fix the situation and compete
with the Chinese products and companies. In 2017, US had $566 billion trade deficit and
$336 billion trade deficit only with China. Along with imposing the tariff, Trump announced
that China has robbed hundreds of billions in a year through intellectual property threat which
is a great loss for the US economy (Swanson, 2018).
Trump has imposed the tariffs and the plans due to which the conflict between the countries
increased, but the main responsibility of the situation is on China. As due to unfair practices

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of the China US president has took certain steps in order to deal with the China’s companies
and products. In this respect Trump shut down Huawei from the US market declaring as a
national emergency, and informed other nations to not to deal in products of Chinese
company, as the China government could use the products to spy within the other countries
(Stewart, 2019).
Both the nations are focusing on being world’s largest economy, and in order to achieve the
position, both the nations are under a trade war which might have a negative effect for both
the nation in future. As both the nations are economically strong, and are developed
economies of the world, due to which both the nations are comparatively strong and hence
the conflict more competitive than being a cooperative conflict, and both are trying to make
changes accordingly in the international working system (Wong, 2019).
Another reason of the conflict between the US and China was forced transfer of American
technologies to China. The China’s MNCs took advantage of the US free trade policies to
acquire small American companies and after that using cyberthreat to gain the American
technology. The US government took necessary steps in order to protect the companies from
handling over their technologies and key assets to Chinese companies, and retain their
effectiveness within the industry. In order to overcome the effects of such Chinese
government’s unfair practices the US government focused on imposing tariffs on the products
imported from China, also focused on shutting down the Chinese technological firms in US,
so that the treat of data transfer and spying can be minimized (Mason, 2019).
Trump is developing strategies in order to slow down the growth of China and to force
Chinese government to act as per the US government. But the Trump is not able to
understand the Chinese culture of doing business, and to understand that china will not bend
in US pressure and will stand firm. The US government imposing tariffs on the products are
becoming burden on the citizens, farmers and businessmen within the economy. As due to