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Main argument related to Trade War

The article entitled as "The 'Madman' Behind Trump's Trade Theory" outlines decisions by the American president, Donald Trump and Peter Navarro, considered as among the significant generals in Trump's trade war. Initially, this article states about the current economic rise in China and an indication regarding the high cost of low prices that occur on people of the U.S.A due to the trading with China. It has been noticed that recently, the entire government of America is concentrating on processes to ensure China play by the regulations and also to reduce its economic rise (Lowrey, 2019). Decisions of the president include slapping of tariffs on hundreds of billions of dollars' worth products that have been imported from the "People's Republic". One of the main reasons behind this type of trading decision or trade war initiation can be aiding American businesses and eradicate other countries' dependency and development on American's expenses. Recently, the American administration has also renegotiated the "North American Free Trade Agreement". 

From the above article, it has been understood that China has a history of ripping off the United States for the past two decades. This statement has been announced by the American president, Donald Trump and Peter Navarro. One of the main concerns of starting the trade war is to restore manufacturing jobs back to the state. This new trading policy has to be made due to the interest that America's trade shortage is bleeding this country almost dry and even declining its national security. On the other hand, it has been noticed that China is accused of stealing intellectual property and of opening their markets. Many of the top officials of Donald Trump have negatively expressed on the view that decisions about decoupling the U.S.A and Chinese economies are not as significant and necessary aim as perceived at first (Lowrey, 2019). 

Analysis of the trade war between America and China

From the above decisions regarding trade war between the United States and China have both negative and positive aspects. Positive aspects have been discussed in the previous section of this study indicating to the fact that this new trade policy will help in bringing back life to the draining American economy and will help in bringing back the manufacturing jobs to the state. However, not a single political or administrative decision is devoid of criticism. It could be said that as per the analysis of different economics, Trump's announced reasons for initiating a trade war with China is not making any sense (Gittins, 2019).

On the other hand, it could be outlined that this decision has been taken against the economic development of China not just for the economic rise and restoration of jobs in America. Accusing China of cheating and responsible for draining America for more than two decades is based merely on the fact that currently, as per the import and export business status, U.S.A is purchasing more than China purchases from America. This only suggestive of the fact that U.S.A is in a trade deficit condition with China. On the contrary, it could be said that "bilateral" trading imbalances are quite normal and the unavoidable results of countries' around the globe differing "competitive advantage" (Gittins, 2019). In this context., for instance, China is increasing strengths in manufacturing. 

In the flip side, according to economic studies, it is not significantly ineffective if a country runs an overall trading deficit. For instance, it is only possible for a country to runs a specific amount deficit when its investments in new business operations, public infrastructure and homes surplus its capability to fund this type of investment with its own savings by organisations, governments and therefore, needs it to call on the conservation of foreigners. Current changes in economic development in many Asian countries (such as China) have risen various questions regarding cost related to the trading process (Gittins, 2019). From this perspective, criticism of Donald Trump's decisions can take a different turn. Sometimes liberal economics can apply tariffs to reduce the prices other countries charge them for import services. For instance, markets of large countries are so profitable, other smaller countries supplying imports absorb some of the expenses of the tariff to keep their retail costs competitive. 

The lower value of imports around the docks develops the large countries terms and conditions related to trade, developing their real income. From this argument, it seems that the United States has less to lose from an outburst of "protectionism". That is why other countries should place more efforts in preserving and obeying the "WTO's regulation-based system", and Donald Trump does not seem the madman as identified by many (Gittins, 2019).

On the other side of the coin, many economists on both the right and left said that Navarro's basic concepts or trade are outdated and can be stated as "plain wrong". According to Navarro, reducing or eliminating America's trade deficit can help economic expansion. For instance, in some cases, smaller trading deficits can be effective for a stronger economy, if U.S.A businesses decide to develop export with foreign markets. However, on the contrary, a smaller trade deficit could help America, say diverting its "corporate resources into higher-margin and higher-profit enterprises", if the government welcome investments into their country (Lowrey, 2019). According to other economists, bringing back all jobs from China also seems too impossible. For example, currently, "made in America" vehicles need foreign parts and the government has no power to deny this fact.  

This type of decisions is affecting organisations that rely on the import business. They are facing layoffs. Development in consumer prices and others are evident in slowing down the economic growth altogether. At the same time due to a trade war, deficits are increasing not lessening (Lowrey, 2019).

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