For two years this war has left the global economy in a precarious condition, presently the war is not heading for closure but rather skyrocketing. If the war continues, it will inflict irreparable damage beyond our wildest imaginations in both countries. With the world experiencing the post-COVID-19 pandemic era, nations worldwide are trying to revive their economies from the blow. Though China attests to full recovery, nonetheless, this has created problems in relation to trade.
Trump’s action in 2018 in regard to the trade war has reduced economic growth in US, unemployment, bankruptcy among farmers, and halted business activities. According to Bloomberg, the US-China trade war has cost US economy about $316b as at the end close of 2020, US companies also lost about $1.7 trillion in stock price. A trade deficit with China has been unending and has grown over the years to a massive $419.2 and experienced an increase in trade deficit with countries like Mexico, Taiwan, and South Korea.
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China felt a pang but not as Trump envisioned from the onset of the war despite the heavy tariffs. With the continuous war under Joe-Biden, supply chain catastrophe is eminent in the US the chip and ship crisis of 2021, is another way these two giants are still on the threshold of disunity. Since China cannot produce a large number of chips, Taiwan Semiconductor Manufacturing Corporation (TSMC) is capable of developing more extreme-tiny chips than China’s largest chip firm.
Biden’s Administration is still following in the footsteps of Trump and chances are the war might be severe. With Biden’s administration countering china and a switch to home-based production, and a need to be more competitive in the global world. It will take time before the dream is realized since US manufacturers are not inclined to such exclusive exertion. Continuous war is a risk for both countries and an intense risk and a long deadlock is expected.
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