Trade War between US and China: Impacts on the World

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Throughout history, human beings have fought wars on the battlefield. Armies of two opposing sides march towards their deaths in a contest, determining who dominates who.

Throughout history, human beings have fought wars on the battlefield. Armies of two opposing sides march towards their deaths in a contest, determining who dominates who. Our history is rich with conquests and wars. To establish one’s interest or to expand one’s kingdom, war has always been the favored tool to achieve it. As a result, we have witnessed two great world wars in the early twentieth century. The course of events followed by those two world wars changed the entire world. Now, education has shifted online, and students are searching for Stanford online class help. We are living in a relatively war-free peaceful time. However, this wasn’t the case before. We have come a long way. To understand our current situation, we need to first understand what we have been through.

The aftermath of the Second World War resulted in great human calamity. Soon after, the world realized that we need to prioritize humanity over self-interest. However, how can you eliminate the selfish gene of humans? You can’t. Human beings are complex and they will always work for their own interests. Even though we have decided that it’s no longer feasible to fight wars on the battleground, we have divulged into other areas. The dominance of the world is no longer being defined by battle victories, but rather by the economy. Power has changed its dynamics. The country that has the biggest economy rules the world.

Economy is Power

In today’s world, nations fight wars on the economic plane. In order to dominate, a country needs to cripple other country’s economy or at least have them become dependent on your economy. Power is the defining factor of dominance, and since we are no longer fighting typical wars, human’s self-interest has penetrated the realm of economy. States fight their battles on economic grounds. The more a state possesses economic independency, the more it enjoys the power in the world. Being self-sufficient is key in today’s world.  

America’s Dominance 

America established its global hegemony after the Second World War. Taking dominance out of the hands of the British, America started to plant its root in the world. The twentieth century is also called the American century. In times where other countries were still regenerating, America’s precedence on capitalism made it a force to reckon. As a result, America came about global power with its enriched economic resources. It has enjoyed a stable and progressive rule in the world and still does. However, there is one other country that is trying to dethrone the American hegemony.

China’s Entrance

If you know anything about China and its growth, you wouldn’t be surprised to see it here. Ever since the reforms in 1979, China has seen an unstoppable economic growth in the world. Pulling 800 million people from poverty, China has set itself to dominate the world as the leading economic power. Over time, China has slowed its annual GDP growth. However, that is not damaging to them. They have focused on making other sectors flourish by changing their priorities. China is right behind the US in the race of leading economic power, and that is threatening for the US.

All-Out War between the US and China

If you know anything about enjoying power, you know how hard it is to see it slip from you. This is exactly what is happening to the US. The US is in an all-out war with China. Even though it is solely based on economic terms, you can’t leave out politics from power. America is not liking that China is challenging its reign on the throne.

China has always been the supplier of low-tech goods to the market. However, China’s new plan by the name of “Made in China 2025” insists on making China a supplier of high-end technology products. The aim of this invitation is to make China less dependent on foreign technology. China is set to work with private companies ensuring that their initiative bears fruit.

Even though China is implementing policies to ensure its own growth, the insecurity of America is coming out. America believes that this initiative of China is a direct threat to its own economic self-interests.

Trade War Between the US and China

As soon as America deemed China as the rising threat, it started to implement tariff increase. This tariff increase gave birth to the topic of our discussion, trade war between China and America. In 2017, while President Trump was in chair, the administration imposed section 301. It raised 25% increase in imports from goods coming from China. China gave a befitting reply by imposing the same increase on American products. This started the tension among the two powerful states.

China’s economic growth has been of great interest to the US. The trade policies and transition of the free-market economy of China have dire consequences for the United States of America. Even though the war is being fought between two countries, its consequences can be dire for other countries.

5G War

Take 5G for example. 5th generation technology is said to revolutionize our digital way of doing things. The promise of high-speed internet is set to change the smart way of living. Driverless cars, smartphones, smart homes, and internet of things (IOC) are set to be revolutionized by the lightning speed of this new technology. Students can search Stanford Online Class Help with a blink of an eye with 5G. China has been at the forefront of being the global supplier of this technology. That is threatening to the US. If we go back a while, it was the United States of America who won the race for 4G technology and gained an additional $100 billion dollars to its Gross Domestic Product. However, with 5G in the equation, the stakes are even higher. Chinese giant, Huawei, is a known tech producer in the world. Not many people know that Huawei is the only company that is providing 5G technology in the cheapest of prices.

Even though Huawei is a private company, United States of America has its own doubts. The Trump administration was adamant on its spying risks. Due to ‘national security concerns’, Huawei had been on the crosshair of trump’s administration. Soon, US warned its allies to refrain from buying the Chinese tech-giant, going so far to say that they will lose intelligence-sharing privilege. The desperation portrayed by the former POTUS Trump showed how damaging this trade war is to their reign. Despite the pressure by the US administration, many European countries still went ahead and signed the deal. If we talk about states doing things for their own self-interest, Huawei’s 5G proposition was the best they could have.

Conclusion:

The two countries are fighting a cold war on the basis of their economies. However, the implications can result in global political unrest. The United States of America is still dominant. The trade war can result in political pressures, as we discussed above. It is fascinating how economic power struggle can bring about uncomfortable political unrest in the world. The states observing the trade war needs to make a decision. Whether they side with America in its attempt to secure its position, or they stay silent and let the chips fall, wherever they fall. What do you think about the trade war between America and China? Let us know in the comments.

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