Recently, 28 China entities were put in American blacklists. American companies are not allow to provide products for them or let them sell products in America. In the name of security problem, they ban them in the name of security and stealing of American technology. Everyone knows this will make a great influence on both of side in short term. But for American this might be good for them, because they don’t need to worry Chinese companies will compete with them if they can’t make any process on it but just have to buy their products. Also, the competition is not only in the high tech field but also make a actually influence on all of us. From the sources:”Farmers suffer from retaliatory tariffs imposed by China and Europe on their exports. In the farm belt of Illinois, Indiana, and Wisconsin, bankruptcies have risen to their highest level in a decade. In 2017, those states produced half of all U.S. food. Nationally, farmers’ income fell by $11.8 billion between January and March 2019.” Trump’s trade war make China and Europe increase the tax of the product from American farmer. It make a huge lose for them, but they are the actually group who support Trump become president. Not only in agricultural, but the situation like this will separate to more and more field.
The trade war is actually the battle of economy between two country. And Trump is now using his tactic to stop the growth of China and Europe. By increase the tax and blacklist, Trump limit the product import from both China and Europe. And hope this can make a critical impact on them. Another reason is Trump wants to make Dollars flow back to their own country to take back all the capital, so he let CIA the protest chaos in HongKong and let the capital flow back American. This happen to Singapore, Japan, and lots of other small Asian country before. They highly rely on the Dollar, so when the trade war comes they all done.
The American’s goal is not to win trade war, but to force a change in China’s whole economic and industrial policy. So they can continue to be benefit from the high tech industrial. In order to achieve this, they start to limit the supplement for Chinese tech companies which can make a huge impact on their income. But things change a little bit now, American claims that they want to slow down the process of the ban. They are still negotiating with Chinese government, because it will also hurt their own company if they can’t sell more product to Chinese company. We don’t know the result of the trade war yet. American has the dominance of dollar, so they can use their power to control the economic of the world. China have a central Government, they don’t need to worried the influence of price to people because government take care of it. From the source: “China is the world’s No.1 exporter. Its comparative advantage is that it can produce consumer goods for lower costs than other countries can. China has a lower standard of living, which allows its companies to pay lower wages. American companies can’t compete with China’s low costs”, we can know this is where China become competitive when they have a central authority government. The trade war is not only hurt one side, but it will also hurt the other side. Every country need to consider deeply before they make big decisions. No one knows who will be the winner but this will definitely be a hard process which is full of compromises.
China by tomasdev on 2011-06-26 15:40:03