Recently it has been seen that some of the world's economic players have been directly affected by the current trade war between the United States and China. These two countries are antedating to assault each other with announcements and a trade war; nevertheless, their relationship can be defined as a love-hate relationship because the two countries have a lot of suspicion for each other, but they also need each other. “The relationship between the United States and China has no ceiling. Richard McGregor, an author and China expert, says, "We keep reaching new lows."
The rivalry between the two most powerful colonial forces is intensifying at breakneck pace. The US ordered the closure of China's consulate in Houston in July, followed by the closure of the US consulate in Chengdu shortly after. The relationship between the two countries turns to worse.
The United States needs Chinese low-wage labor and low-cost products. China also wants the United States to be an investor in its businesses. The growing rivalry has a distinctly twentieth-century feel to it. It's a global rivalry in trade, technology, and strategic control between two nuclear-armed forces with incompatible political systems. There were almost no economic relations between the United States and the Soviet Union. The United States and China, on the other hand, trade over half a trillion dollars in goods and services per year, making them one of the top three bilateral trade partnerships in the world. Furthermore, China owns up to a trillion dollars in US government debt and is the biggest market for many US companies.
Donald Trump is a well-known businessman who owns companies and businesses all over the world. Trump's presidential campaign in 2016 raised many questions, including whether he is qualified to run for office. Trump responded by replacing Obama as the 45th President of the United States. To protect the US economy from what he referred to as the "robber from China," Trump pursued a protectionism agenda. Both steel and aluminum goods entering the United States from Europe, China, Canada, and Mexico will be subject to 25% and 10% tariffs, respectively, according to Trump's rule. China, understandably, is enraged that the US has released this order, as well as a policy on all tribal goods. The United States manufactures automobile parts, as well as agricultural and fishery products.
In addition to the tariff battle, President Trump has requested that the TikTok and WeChat apps be banned from being used in the US. We know that these two innovations are widely used by the general public. Huawei, the Chinese telecommunications giant, has been accused of leaking US national security data to China via Huawei's deal with US security authorities, and has so far escaped Trump's "rampage." As a result, many US companies have been forced to terminate Huawei contracts or face sanctions. Google is one of the companies affected by the contract termination, which means that all Huawei mobile devices manufactured after 2019 will be devoid of Google services such as the Google Play Store, Gmail, and YouTube.
Many economic organizations around the world expect a 0.7 percent reduction in GDP in 2018 and a 2 percent increase in 2020. The global economy has become largely sluggish as a result of the Coronavirus pandemic, with global economic growth estimated to be less than 1%.
In the midst of tense trade talks between the US and China, the COVID-19 pandemic is wreaking havoc on their relationship. As a result of domestic pressure in the United States to control the pandemic, Trump has accused China of being the virus's source of dissemination. As a result, Trump's labeling of China as "the China Virus" has placed the future of US-China ties in jeopardy. Furthermore, the United States' absence from the World Health Organization (WHO) during Trump's presidency coincided with the pandemic, providing China with a new opportunity to extend its influence. China is taking advantage of the Covid-19 pandemic.
China's success in containing the pandemic has given it trust in dealing with the United States. Meanwhile, the United States' situation is becoming increasingly precarious. Furthermore, the United States' reliance on overcoming Covid-19, which necessitates cooperation from a wide range of parties, including China, weakens the country's status as a superpower. This is exactly what we wished for when Biden was elected. Many people believe that President Joe Biden is ready to "soften" the US position on the trade war with China. Biden has made several contacts with Beijing since his inauguration on January 20, 2021, to discuss a number of topics, one of which is the continuation of the trade war.
In the trade war with China, the Biden administration emphasized that it does not expect to repeal numerous regulations enacted during the Trump administration's tenure, but it also does not intend to use the same aggressive negotiating tactics as the Trump administration. Furthermore, the Biden administration must exercise caution. If Biden prioritizes domestic concerns, China would have more space to drive its policies, particularly in the areas of technology and territorial disputes.
Technology is a powerful tool. In the technology domain, the US and China are slowly "decoupling," locking each other out of their markets, cutting supply chains, and following very different privacy standards. And things are getting more zero-sum around here. Third countries are being pressured by Beijing and Washington to choose whether or not to use Chinese-made equipment for their 5G networks. There is a risk that the internet and the global tech industry could break into two competing and conflicting domains.
To summarize, the trade war between the United States and China has ushered in a new era in the global economy, one in which China is attempting to supplant the United States as the world's economic leader, something that the US fears. The door to investment is being thrown open as wide as possible, the private sector is being encouraged to participate (under strict government supervision, of course), the cost of living is that, and defense spending is increasing. Today, we can see how China's economy is progressing, with the country becoming the world's second largest economy after the United States, exporting products all over the world to challenge the United States' dominance, and even having the world's second largest military force after the United States. Will this trade war enter a new chapter during Biden's presidency, with a more "calm" relationship with China and an end to the trade war, or will it stalemate and continue the previous president's stance?
Writer is a Freelance Journalist, Researcher & Business Analyst. E-mail: firstname.lastname@example.org