Considering the preceding update, what currently happens contradicts the previous progression. Although there said to be another talk between the US and China over the trade war, the current condition is the opposite of peaceful.
The aforementioned talk seems to fail as current indication reflects that the conclusion is yet to come. In addition, government of both China and the US respectively state that they are ready to face the trade war. In other words, the world would not spectate its finale soon.
President Donald Trump implied that he requires no such deal with Beijing to be reelected in the upcoming 2020 presidential race. In contrast, he stated that even the generation next to him would be far rougher to China.
Meanwhile, China is currently working on its monetary policy as an attempt to face the never-ending trade dispute. Accordingly, pumping additional credit into its banking system or boosting fiscal support for the economy will be some of China’s strategies.
Preceding to this event, both countries were imposing additional tariffs to each other. Furthermore, China also brought the matter to World Trade Organization again. In the past, both countries had agreed to not include WTO in this dispute anymore.
Also Read: Indonesia Has Steady Economic Growth Amid Trade War
There is a Cause, but There are Effects
The US-China trade war does not solely affect the actively participating parties. Globally, the dispute ruined investment markets and triggered global economic slowdown.
However, the actively participating parties also have “casualties.” Both the US and China, as well as their companies, have been massively suffering from the dispute.
As we all know, China is having a hard time in numerous sectors. For example, its tech and telecommunication giant Huawei is facing a life or death situation because of it. This is so for Huawei would be unable to purchase products from US companies as well as using Google’s Android service.
On the other hand, the US indicated that the Americans are not suffering from the dispute. Anna Ashton, senior director of government affairs at the U.S.-China Business Council, told so to CNBC.
“As long as the trade war that we’re in right now isn’t having an impact on the United States’ economy that is demonstrably bad for regular Americans … being tough on China, looking tough, is probably enough,” she said.
The claim is not totally true. Myriad US companies suffer from the dispute. For example, footwear companies would be having a hard time to mass-produce their products due to the tariffs. This is so since they have been doing most of the production process in China for years and decades.
Also Read: Japanese Factories suffer from US New Tariffs on China
