Home » Blog » Who is winning the trade war between us and China?

Who is winning the trade war between us and China?

Who is Winning the Trade War between the US and China?

The trade war between the United States and China has been ongoing since 2018, with both countries imposing tariffs on each other’s goods. The dispute has affected global trade patterns, hurt businesses and consumers, and led to significant economic repercussions. In this article, we will explore who is winning the trade war between the US and China.

Understanding the Trade War

Bulk Ammo for Sale at Lucky Gunner

The trade war started when the United States, under the Trump administration, imposed tariffs on Chinese goods worth $34 billion, citing intellectual property theft, unfair trade practices, and a large trade deficit with China. China retaliated by imposing tariffs on American goods worth $34 billion, including soybeans, corn, and pork. Since then, both countries have continued to escalate the trade war, with the US imposing tariffs on an additional $200 billion worth of Chinese goods, and China imposing tariffs on $110 billion worth of American goods.

Current State of the Trade War

The trade war is ongoing, with no signs of resolution. In June 2019, the US imposed tariffs on all remaining Chinese imports not already subject to duties, totaling $250 billion worth of goods. China retaliated by letting its currency, the yuan, weaken, making Chinese exports cheaper for foreign buyers. In September 2020, the US and China agreed to a Phase One trade deal, which reduced tariffs on some goods and increased purchases of US agricultural products and manufactured goods by China.

Economic Impact of the Trade War

The trade war has had a significant impact on both economies. According to a report by the Federal Reserve Bank of San Francisco, the trade war has reduced global trade and economic output, with estimates suggesting a reduction of around 1-2% in global GDP.

Trade Balance

As of 2020, the trade balance between the US and China looks as follows:

201820192020
US Exports to China$115.6 billion$95.9 billion$83.3 billion
China Exports to US$425.6 billion$484.6 billion$452.9 billion
Trade Deficit (US)$310 billion$388.7 billion$369.6 billion

****bold text to highlight significant points

From the table above, we can see that the trade deficit in favor of China has been increasing steadily. In 2020, the US trade deficit with China was the highest in history.

US vs. China: Who is Winning?

From the economic impact and trade balance, it can be argued that China is winning the trade war. China has been able to:

Mitigate the Impact: China has been able to minimize the impact of the tariffs by diverting exports to other countries and increasing domestic production.
Maintain Trade Balance: China’s trade balance with the US has remained favorable, with the country running a large trade surplus.
Diversify Economy: China has been actively working to diversify its economy, reducing its dependence on exports to the US.
Growth and Investment: China has seen steady economic growth, with investments in technology and infrastructure.

US vs. China: Who is Winning?

On the other hand, the US has been unable to achieve significant gains in the trade war. The US:

Reduced Trade with China: The trade war has led to a decline in US-China trade, with American exports to China decreasing.
Suffered Economic Losses: The trade war has had significant economic repercussions for the US, including increased costs for businesses and consumers.
Lacking Diversification: The US economy is heavily dependent on China, with over 30% of American exports going to China.
Inefficient: The US tariffs have led to higher prices for consumers, inefficiencies in global supply chains, and economic uncertainty.

Conclusion

In conclusion, it appears that China is winning the trade war. China’s ability to mitigate the impact of the tariffs, maintain its trade balance, and diversify its economy have given it an upper hand. While the US has imposed significant tariffs, its economy has suffered significant economic losses and remains heavily dependent on China. To move forward, the US may need to reconsider its strategy and explore alternative trade agreements that prioritize mutual benefit over tariffs.

Additional Measures

The trade war highlights the importance of global economic cooperation and the need for countries to work together to address issues such as trade imbalances and intellectual property theft. Additional measures to address the trade war and promote international cooperation include:

International Agreements: Encouraging countries to adopt international agreements on trade, such as the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights.
Regional Integration: Encouraging regional integration through trade agreements like the Trans-Pacific Partnership (TPP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Cooperation: Encouraging cooperation between countries on issues such as counterfeiting, cybersecurity, and other global economic concerns.

The trade war between the US and China highlights the complex and dynamic nature of international trade. While the immediate winners and losers may change, it is essential to prioritize global cooperation and diplomacy to address issues and promote economic growth and stability.

Enhance Your Knowledge with Curated Videos on Guns and Accessories


Leave a Comment