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Source£ºTongrennews    Updated£º2020-04-04 00:44:08

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What happens if Trump¡¯s trade wars continue? Do America consumers  feel the effects of the wars in their pocketbooks? Do some America industries get a big boost from the wars? What happens if nothing or  very little happens in response to the trade wars? Experts say the trade war with China is real and important. Americans from the political left and the political right agree that China is a big cheater on trade. China  uses its  power to force American companies to share technology. It makes U.S. companies join with Chinese partners to do business in China. President Obama had a new trade plan. It was not an agreement  with  China, but with other countries. It was the trans-pacific partnership. The partnership would create a bloc of nations that would rival China in the size of their economies. President Trump killed the  idea. He said, ¡°Trade wars are easy to win.¡± Observers note that  claiming victory is not the same  as winning. China and the U.S. are two heavy-weight nations. Each can take a lot of pressure and economic punches  without folding. China¡¯s exports  are surging. The U.S. economy is strong. It is not only China and the U.S. that are circling each other. Global companies have a big stake in what is happening. One issue for these companies   is the supply chain. For example, companies make washing machines parts in different countries. Only the country that  ships the finished product to the U.S. is subject to the U.S. tariff. What if you  made the washing machine in China and shipped it to Taiwan? A factory there could put the knobs on and ship it to the U.S. ?There is no tariff on goods coming from Taiwan. There is another way tariffs may  have little impact. The new U.S. tax law cuts corporate  taxes. If companies pay less in taxes, they will have more cash on hand. They may not have to raise prices to pay tariffs. The trade wars may be more about  politics than economics.  China has vast plans. ¡°One Belt One Road¡± is their program for investing worldwide. It is financing tunnels, railroads and other huge projects around the world. The long-range purpose is to create  a Chinese global footprint.? ¡°Made in China 2025¡± is  China¡¯s plan to turn itself into a high-tech global superpower. Donald Trump started the trade war to keep  a campaign promise. Most economists  think it is not a good idea. There were other ways to change agreements that needed  revision. China is in complete control of its economy. It can stop any internal dissent aimed at its policies. For now, it is  betting on its moderate economic experts to reach  a compromise with America. President Xi can agree to some changes, but he must make those changes without losing face. At first, the U.S. and China were trading tariffs  dollar for  dollar. The U.S. now threatens to place 0 billion more in tariffs on trade from China. China made a return threat to place only billion in tariffs on trade from America. ?This is because China  imports less from the U.S. than it exports. It is a way to make talks easier to continue. Meanwhile, Americans  and Chinese people are going about their business. Source: The New York Times August 8, 20 18 )



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