US-China trade war keeps escalating

A trade war between the USA and China appears to be gaining steam, RISS expert Vyacheslav Kholodkov said. “This is a war between the two economic giants for dominance in the world economy, which is based on technological superiority. For this reason, the negotiations that were held earlier at the meeting of the American and Chinese delegations were focused not only on reducing the deficit of bilateral trade. In fact, Washington demanded that Beijing reject its intention to overtake the US economy and stop state financing for advanced technologies,” he explained.

In his opinion, after Trump's publication of a revised list of Chinese high-tech goods, in respect of which it is expected to introduce increased duties of 25%, American workers and consumers will suffer as a result of inflation that will accelerate in the US. “China has already stated that if the USA introduces increased duties on Chinese goods, all agreements reached between the two countries will be canceled. Beijing has promised to introduce reciprocal duties on some American goods mainly for agricultural purposes, in particular, on soybeans. Last year, the US exported soybeans to China in the amount of 13 billion dollars. China also intends to introduce duties on American cars, aircraft, and chemical products. Trump replied that if China introduces such duties, he will publish an additional list of Chinese goods in the amount of 100 billion dollars,” RISS expert said.

The expert believes that Washington will start a two-front trade war against the EU and China in the near future. “In her speech, managing director of the IMF Christine Lagarde clearly pointed out that we may expect a blow to international trade and the US economy due to high inflation in the country and the break in the US-China technological chains. This can provoke the global economic crisis and the overall decline of economic development,” V. Kholodkov said.

China trade USA economics