Is the US Slowly Rolling Over to China in Its Own Trade War?

The trade conflict escalated after U.S. President Donald Trump remarked how China was pressuring foreign companies to hand over their technology in order to do business in China. (Image: Screenshot via YouTube)

The ongoing trade war seems to indicate rough times ahead for the world. The U.S. and China have been on conflicting paths for the past couple of decades. Though America was the dominant global power for much of the latter half of the 20th century, China seemed on its way to challenge that title since the dawn of the new century. As such, it was inevitable that these two competing powers would clash.

The beginnings of the trade war dispute

The trade war conflict escalated after U.S. President Donald Trump remarked how China was pressuring foreign companies to hand over their technology in order to do business in China. This, he said, was a violation of free trade commitments. Plans for “Made In China 2025,” which aim to make China the manufacturing hub of all tech-related products, has put the U.S. on high alert to pick up their game or leave manufacturing for good.

Subscribe to our Newsletter!

Receive selected content straight into your inbox.

Technology and patents

The technology issue stems from the fact that several tech companies were complaining about how Beijing’s policies kept them away from accessing the Chinese market. In fact, China was reportedly forcing companies to transfer their technology.

This move was seen as a threat to America, which is the world leader in technology. After all, if U.S. tech companies have to transfer technology to China, it will affect competitiveness adversely. And the U.S. government has inevitably been against any such policies. “Real structural change is necessary. Nothing less than the future of tens of millions of American jobs is at stake,” said U.S. Trade Representative Lighthizer.

President Trump’s decision to slap import tariffs to the tune of $60 billion on China has certainly put U.S.-China relations into a new context. (Image: pixhere / CC0 1.0)
The technology issue stems from the fact that several tech companies were complaining about how Beijing’s policies kept them away from accessing the Chinese market. (Image: Public Domain via Pixhere)

Sanctions and restrictions

In a bid to put pressure on China, the U.S. hiked the tariff on aluminum and steel imports from the Asian nation. And in response, China hiked the duties on aluminum scrap and pork imports from the U.S. In addition, wine, steel pipe, and apple imports were also targeted.

These actions led to the speculation of an impending global trade conflict. But to allay such fears, representatives of the two countries had a meeting recently in which it was decided to pause the ongoing trade war between the two nations. “We are putting the trade war on hold. Right now, we have agreed to put the tariffs on hold while we try to execute the framework,” said U.S. Treasury Secretary Steven Mnuchin.

In a bid to put pressure on China, the U.S. hiked the tariff on aluminum and steel imports from the Asian nation, which began the trade war.
In a bid to put pressure on China, the U.S. hiked the tariff on aluminum and steel imports from the Asian nation. (Image: kees torn via Flickr)

The trade deficit

The trade deficit of the United States with China was a staggering US$335 billion per year. And this was also causing severe headaches to the American establishment since it did not want the country to become too deep in debt with the Chinese.

The U.S. administration wants to offset the trade deficit by reducing it to US$200 billion per year. An idea that has been put forward is to increase the export of agricultural and energy products to China. However, no concrete plans or agreements have been set up.

With China poised to become the world’s No. 1 economy in a few short decades, the U.S. administration seems to have grown cautious in their approach to the Chinese.

Follow us on TwitterFacebook, or Pinterest

Recommended Stories

Victoria Harbour Hong Kong.

3 Reasons Hong Kong Is Important to China: Money, Money, Money

With Hong Kong protests turning increasingly violent, Chinese media have been calling for stricter actions ...

The book 'Love Your Body.'

Book Review: ‘Love Your Body’ by Jessica Sanders

People have always been conscious of their bodies, spending countless hours worrying whether they were ...

The Khmer temples of Koh Ker.

Ground Radar Reveals Why Ancient Cambodian Capital Was Moved to Angkor

The largest water management feature in Khmer history was built in the 10th century as ...

The ancient city of Angkor Thom.

New Research Casts Doubt on Cause of Angkor’s Collapse

New University of Sydney research has revealed that the ancient Cambodian city of Angkor underwent ...

A young Hmong woman in traditioanl dress.

What Do You Know About the Hmong Community and Their Upcoming New Year?

The Hmong people are a community native to East and Southeast Asia. They hold a ...

Sayragul Sauytbay.

The Story of How a Kazakh Woman Survived China’s Re-education Camps

When talking about the persecution of Muslim minorities in China, the Uyghur community largely takes ...

Piles of dyed material.

How-to: Dyeing Your Clothes the Natural Way

There is a growing trend of people opting to dye their clothes using natural, plant-based ...

Hong Kong police accused of sexual violence.

Hong Kong Police Accused of Sexual Violence

On November 2, the Hong Kong democratic party held several election rallies with less than ...

The Huangtengxia Glass Corridor.

A Glass Corridor in China Featuring a Manmade Waterfall

In the Qingcheng District of Guangdong Province, the Chinese have created a unique structure that ...

Send this to a friend