Balades en expertise comptable :
The US-China Trade War...
Actu Anglais juillet 2024
Décrypté par Jean-François Allafort, co-auteur des Fiches DCG UE12 Anglais des affaires, collection « Expert Sup », Dunod, et présenté par Ian Waddelow
#USA #China #Trade #TradeWar #TradeImbalance #IntellectualPropoertyTheft #TechnologyCompetition #GeopoliticalTensions #TradeDispute #TradeSurplus #TradeDeficit #Tariffs #Subsidies #TradeBar
The US-China Trade War
Welcome to the series of DUNOD podcasts designed to help improve your English in your own time on topics related to your studies.
The U.S.-China trade war represents one of the most significant economic and geopolitical developments of the 21st century. It’s a multifaceted conflict encompassing trade imbalances, intellectual property theft, technology competition, and geopolitical tensions.
This podcast will explore the origins, key events, impacts, and potential implications of the U.S.-China trade war.
The roots of the U.S.-China trade war trace back to longstanding trade disputes and structural imbalances in the economic relationship between the two countries. China’s rapid economic growth, fueled by its export-oriented manufacturing sector and state-led industrial policies, resulted in a massive trade surplus with the United States. This trade imbalance, combined with allegations of unfair trade practices, intellectual property theft, and forced technology transfer, fueled growing frustration among U.S. policymakers and businesses.
The U.S. goods and services trade deficit with China was $367.4 billion in 2022.
In response to these grievances, the Trump administration initiated a series of trade actions aimed at rebalancing the economic relationship with China. In March 2018, President Trump imposed tariffs on imported steel and aluminum under Section 232 of the Trade Expansion Act of 1962, citing national security concerns.
The imposition of tariffs by the United States triggered retaliatory measures from China, leading to a tit-for-tat escalation of trade barriers between the world’s two largest economies. China retaliated by imposing tariffs on U.S. exports, particularly agricultural products, automobiles, and energy commodities, causing significant disruptions to American farmers, manufacturers, and exporters.
The trade tensions further intensified as the Trump administration accused China of engaging in unfair trade practices, including currency manipulation, intellectual property theft, and forced technology transfer. The United States also took measures to restrict Chinese investment in critical sectors and initiated investigations into alleged violations of intellectual property rights by Chinese companies.
So what was the impact on the global economy ?
Certainly, the U.S.-China trade war had far-reaching implications, contributing to increased uncertainty, volatility, and disruptions in global trade and investment flows. The escalation of tariffs and trade barriers between the two largest economies has dampened business confidence, weighed on global growth prospects, and disrupted global supply chains.
The trade tensions have also roiled financial markets, with heightened volatility and risk aversion, affecting investor sentiment and asset prices worldwide. The uncertainty surrounding the outcome of the trade negotiations and the potential for further escalation has contributed to market fluctuations and capital outflows from emerging markets.
Moreover, the trade war had significant spillover effects on other economies, particularly those with close economic ties to the United States and China. Export-oriented economies, such as Germany, Japan, and South Korea, have experienced a slowdown in exports and manufacturing activity, all due to weaker global demand and disruptions in global supply chains.
There are also implications for consumers and other industries.
The agricultural sector, in particular, has been hard hit by retaliatory tariffs imposed by China on U.S. agricultural exports, including soybeans, pork, and grains. American farmers have faced declining export revenues, lower commodity prices, and reduced access to key markets, leading to financial strain and farm bankruptcies in some regions.
Consumers have also felt the effects of the trade war, as tariffs on imported goods from China have led to higher prices for a wide range of products, including electronics, apparel, and household goods. Rising import costs have eroded household purchasing power and put pressure on consumer budgets, particularly for low and middle-income households.
What about the future outlook ?
The resolution of the U.S.-China trade war remains uncertain, as trade negotiations have fluctuated between periods of progress and setbacks. While both countries have reached partial agreements and temporary truces, significant differences remain unresolved, particularly concerning structural issues such as intellectual property rights, technology transfer, and industrial subsidies.
The Biden administration has signaled a continuation of a tough stance on China’s trade practices. Indeed, President Biden has recently announced that tariffs on Chinese Electric Vehicles will roughly quadruple under a new plan. Citing people familiar with the matter, the Wall Street Journal sees this as a major issue.
So to conclude, the U.S.-China trade war represents a complex and multifaceted conflict with profound implications for the global economy, industries, and consumers. While the trade tensions have highlighted longstanding grievances and structural imbalances in the economic relationship between the United States and China, they have also underscored the interdependence and interconnectedness of the global economy. The results of the next presidential elections in the US will shape the course of US-China relations - and no matter who walks away, the winner will have an indelible impact on the delicate relationship between the US and China.
