It is a well-established fact that the United States and China are two of the most powerful economies in the world. These two economies have massively impacted and are two of the most important players in the game of world economy. Together, these two powerhouses still hold the capability of achieving what very few allies can achieve.
However, as they say all that shines is not gold. This is also true when it comes to the relationship between the US and China. While the relationship between the two may be extravagant in some fields, in others it does faces a few problems.
One of the biggest examples of the hot and cold relationship between the US and china can be said to be the US-China trade war. Why is it such a remarkable example you may ask? Read on to find out.
Before we get to know more about the US-China trade war, let us focus on the term “trade war”. Trade is the pillar of world economy. It is the wheel on which all the economies of the world run and hence is one of the major concerns for all countries. To wage a “trade war” against a country is to put the country in a compromising position in the field of trade. This usually results in a worse retort by the country that is affected. These may seem like subtler and more peaceful forms of war but the impacts are as devastating and nightmarish.
How did the US-China trade war start?
Like all wars, this trade war also started as a result of some hidden tension and distrust that had been building since a long time between the two economies.
The US claimed that there was a huge deficit with China due to some unfair practices like lack of proper access to America in Chinese markets, monopoly by Chinese giants in these market, intellectual property theft etc.
China also didn’t hold back on its accusations and accused US of trying to sabotage their relationship as they started to see China as a rising global economic power.
Like every war, this was a long drawn event as a result of which the economy of both the countries was compromised. Both the countries kept increasing the tariffs of the products from the other country. This silent war took place in phases with each party giving a greater blow to its opponent than they hit them with.
However, owing to the great diplomatic nature of both the countries, they did agree to have some negotiations to reduce the tensions. However, these attempts were all in vain due to the tragic 2020 coronavirus pandemic and negotiations were postponed indefinitely.
This silent war is still on but has subdued due to the global pandemic. Both the countries still refuse to compromise on tariffs as a result of which there is still lots of unrest.
We can only hope that the war doesn’t get worse amidst the pandemic and things can be better once the situation settles down.