Amer Ishaq Soharwardi
Bureau Chief Washington
After a series of tensions, there is an unpleasant calm between the two biggest economies of the world, China and the United States of America. Both have scored one diplomatic office in each of their respective territories. What ever happens as a result of these tensions the result will directly relate to economies of both the countries but who will lose more that’s the big question?
In 2016 before coming to power President Donald Trump made that clear in his speeches that he will imposes more tariffs on Chinese goods. He even said that Chinese companies are steeling US jobs. He started to do it when in 2018 both the countries indulge in a Tariff war, economies of both the countries suffered heavy losses due to that war which was over Beijing technology ambition.
US is China’s biggest single country export market even after president Donald Trump imposed punitive tariffs on Chinese goods and China is the third biggest market for American exporters as well as a huge market for goods and services produced in China by US companies. Both the countries are also the top producers of technology telecoms, medical and computers but all the star American companies have their big production units in China. US already banned Chinese telecom stars like Huawei and ZTE and on May 2020 President Donald Trump extend that ban till May 2021. China is also a top market for Apple and other US tech brands and is increasingly becoming a technology competitor with its own brands in smartphone medical equipment and other fields.
Since COVID started in USA late February 2020 it became the worst affected country in the world more than 4.4 million people are affected, and more than 150,000 Americans lost their lives. US economy hit the worst US job losses even more than the great depression. In June, the unemployment rate reaches 16 percent, it was estimated to decline but it increases. Currently nearly 50 million Americans have filed unemployment. According to Forbes COVID 19 will cost 8 trillion dollars to US economy. Although Chinese economy also suffers initially it was expected to fall a historic 6.5 decline forecast, but due to timely actions by Beijing it never happened. COVID 19 started from china but vey soon it was contained and now china is not even in top ten COVID affected countries. Chinese economy is now back on track, and very soon China claims to be back on full swing.
US economy is huge but still it is affected by unemployment, Economy Shut down in many areas, increasing COVID 19 and a state of fear that is still very evident. This is election year for president Donald Trump he can be re-elected but more focus is needed To take US economy back on track, bad relations with the second big economy can create difficulties in future.
