Friday, 02 August 2019 14:11

US-Chinese trade war is not about 2 countries

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On Wednesday (24/7), a negotiation of US Trade Representative, Robert Lighthizer and Finance Minister, Steven Mnuchin in Shanghai, China - a first face-to-face meeting with Chinese officials after the G20 meeting ended anticlimax. The US-Chinese trade war can be expected to get more heated.In the trade negotiation that ended on Wednesday (7/31), although the two countries described the negotiations as being constructive, after the meeting, US President Donald Trump threatened again to impose a new 10% tariff on imported Chinese goods worth US$ 300 billion dollars starting September 1. This is the impact of the failure of the US and Chinese negotiators. The levy will hit a number of consumer goods such as cellphones, laptops, toys and footwear. This increases tension in the trade war that has disrupted the global supply chain and shaken the financial markets for more than a year. Another round of negotiations between negotiators is scheduled to take place in September. Although the United States and China agreed to meet again in September 2019, nothing can be sure that the meeting will create progress compared to the two-day trade talk in Shanghai, China. The most likely happening is to lead to a trade war that drags on and burdens global markets.It should be remembered that negotiations between the US and China began to heat up in May after US officials accused China of withdrawing from previous commitments. Furthermore, the US violently raised tariffs on imports of goods from China worth US $ 200 billion dollars and China also responded. So, the trade tension increases. Furthermore in September, President Trump also threatened to impose a 25% tariff sanction on Chinese goods worth US $ 300 billion dollars, which has caused unease for American retailers, Walmart and other major US companies. The trade war between the United States and China has brought about negative impact on businesspeople who have been worried about the reality. A number of industrial sectors have been affected, ranging from manufacturing, technology, services to retail. One of the most severe impacts is the manufacturing sector such as telecommunication producers and consumer products.The International Monetary Fund -IMF at the beginning of 2019 had warned that the US-China trade war would bring about an impact on many countries, especially countries such as Argentina, Turkey and Brazil which were vulnerable to sudden pressure. Slowing world economic growth has lowered its forecast for global economic growth by 3.7 percent this year and to 3.6 percent in 2022-2023. Indonesia's trade performance with China also experienced a deficit of US $ 8.48 billion dollars in the January-May 2019 period due to the US-China trade war. We can conclude that the US-China trade war will continue to have a sustainable impact on various parties, and now it is no longer a matter of two countries.

Read 191 times Last modified on Saturday, 03 August 2019 10:46