The trade war between the United States and China: Causes and ConsequencesJohannes Röll 15 / September / 23 Visitors: 22
The trade war between the United States and China has become one of the world's most important economic and geopolitical events. Started in 2018, it has had serious consequences for both countries and the global economy as a whole. In this article, we will look at the causes of the trade war between the United States and China, the key moments of its development and its impact on global trade.
Causes of the trade war
- Trade Balance Inequality: One of the main causes of the conflict was the significant inequality in the trade balance between the two countries. The US imported significantly more goods from China than it exported its goods there. This led to a deficit in the U.S. trade balance and caused concern in U.S. business and government.
- Intellectual Property and Technology Transfers: the U.S. accused China of intellectual property violations and forced technology transfers. U.S. companies claimed that they face obstacles when trying to do business in China and are often forced to transfer their technology to Chinese companies.
- Subsidies and government support: Chinese government support for its economy, including subsidies and incentives, has prompted accusations of unfair competition from the United States. This has become a key issue in the trade war.
- Trade Barriers: Both nations have imposed trade barriers and have gone ahead to increase tariffs on important goods. This reduced trade and exacerbated the conflict.
Consequences of the trade war
- Economic consequences: The trade war had a negative impact on the economies of both countries. It caused instability in the markets and slowed the growth of the world economy.
- Damage to businesses and consumers: Higher tariffs increased the cost of many goods for consumers in the U.S. and China, negatively impacting family budgets.
- Geopolitical implications: The trade war also has geopolitical aspects. It was part of a broad conflict between two countries for dominance in Asia and influence in world affairs.
- Changes in world supply: The trade war triggered changes in world supply. Many companies began to rethink their supply chains and locate production in other countries.
The trade war between the U.S. and China is ongoing and the outcome remains uncertain. This conflict is of global significance and could impact the world economy in the coming years.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer