The US – China trade issue may escalate into what may turn into a US – China trade war. This would be a trade war hat many believe that the US cannot win. Chinese state media has stated that it will defend its own trade interests after it was announced that President Donald Trump would back tariffs imposed on imports from China.
US – China Trade Issue
This information was passed from Liu He, the Chinese vice-premier, during a phone call with Steven Mnuchin, the US Treasury Secretary. Donald Trump has announced that he plans to impose tariffs on up to $60 billion worth of Chinese goods. His reason for doing so was given as the intellectual theft he claims the Chinese are responsible for as a condition of them allowing imports into their country.
Should these tariffs be applied, a trade war is sure to follow between the US and China. This would harm the US more than China, according to many international analysts. While expressing the hope that both the US and China would work together to avoid such an occurrence, Mr. Liu states that China would defend its national interests.
Liu He is the top economic advisor to President Xi. This US – China trade issue could turn into a serious diplomatic problem for both countries.
US Violation of International Trade Rules
Mr. Liu also stated that US was responsible for a violation of international trade rules. This was stated after the US carried out an investigation into the practices of China relating to intellectual property. The Director General of the World Trade Association (WTO), Roberto Azevêdo, warned that any new trade barriers that arose through such trade wars could jeopardize the global economy.
US – China Trade Issue and Trade War
According to Donald Trump, his threat to increase tariffs for Chinese goods is already taking effect. However, China is getting set to apply its own import tariffs. These would be worth $3 billion on US groceries and the US scrap aluminum imports into China. This is a potential trade war that neither China nor the USA can win.