Sino-US trade war
TRADE war between the two biggest economies of the world — the US and China — has already started showing its adverse impact with major Asian stock markets such as Japan, South Korea and Singapore witnessing fall on Monday and undoubtedly it could have serious rippling effect on the global economy if the two sides especially the US Administration which in fact made the beginning by imposing tariff worth $50 billion dollars on Chinese goods, did not act responsibly and with more maturity.
The immediate tit-for-tat response from the Chinese side is very much justifiable and understandable. In fact the country was forced to take strong and forceful measures in response to the short sighted acts from the US side. Trump’s recent actions including the trade spats with the European Union, Canada and Mexico has also drawn strong criticism within the US. Things could get worse as reportedly the White House is formulating a plan for restricting Chinese investment in the United States and putting stricter limitations on the types of advanced technology that can be exported to the country. Then, Trump has already promised more tariffs in response to China’s retaliation. While the Chinese officials are stating that it does not want to engage in a trade war but Trump going ahead with more tariffs will definitely draw a reaction from Beijing. There are reports that China, in turn, is likely to back away from an agreement to buy $70 billion worth of American agricultural and energy products — a deal that was conditional on the United States lifting its threat of tariffs. Indeed as experts are saying the Chinese proportionate and targeted tariffs on US imports are meant to send a strong signal that it will not capitulate to US demands. It will be challenging for both sides to find a way to de-escalate these tensions but indeed the way forward lies only in a negotiated settlement. Instead of considering China as a threat and its trade enemy, the US Administration should accept the new multi-polar world order and keeping in view the changing times should sit with the major capitals to sort out the differences and issues in a congenial environment.