Business & Economy

Does China-USA tension provoke trade war?

China is popularly doing its business in all types of sectors such as automobiles, toys, electronic
items and many more. China is always into dynamic steps to develop its businesses globally.
Now, China is facing a conflict of tensions with the USA. The rise in tension leading to the
development of economies are underappreciated and resulting in slower global growth. These
tensions are compressed on four factors and had believed that this is going to affect the
relations between China and the USA, this leads to ‘New Cold War”.
The four factors that lead tensions to China:
1. Ideological differences
2. Industrial competition
3. Military strength
4. Geopolitics

These factors are going to increase in challenges to resolve the conflicts between these countries. This leads to the ‘Cold War’ and each individual countries will be facing the direct escalation of trade wars and military difficulties. Further, it will affect de-globalization or balkanization of the global economy. They have identified several hypothetical events which are going to trigger a faster and more acute rise in tensions and fragmentation of the global political order.

Even today, the USA and China are far from each other in economic and trade positions. It is creating a gap between these countries in the global trade relationships. The policies which have been created by the US are facing many pit flaws and these unfair restrictions are impacting while imposing tariffs on China. It is said that trade deficits are a good indicator of the state’s economy. The US trade balance was largely driven by soaring US federal budget deficits, this had got little to do with China.

The US President inhaled the words of trade deficits that are going to balance the trade largely driven by soaring US federal budget deficits, and the tariffs going to initiate to fix the US bilateral trade between US and China.
Safeguarding China’s intellectual property –
They achieved their intellectual property by safeguarding their strategic move and through the implementation of trade technologies. Sometimes, this can be mischaracterized. China at the initial stage had been accused of stealing foreign intellectual property, especially in the case of technology. There is the possibility of exaggeration in research activities and on foreign transactions depending upon China’s size of business. Later, China’s patent courts have matured while dealing with this position of foreign plaintiffs are now willing to win the cases regarding domestic firms.

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