The world trade summit did little to fix the issue between the leaders of the US and China. The simple proof is what is happening right now in the trade war between the US and China, which has influenced other countries. Many businesses throughout the world are affected by the trade war which includes even the service-oriented businesses such as sound system hire down to small-time retailers in the industry.
The Impact of China – U.S. Trade War
As is known, China and the US are still involved in trade wars to this day. The two largest economies have been involved in trade wars since the beginning of 2018 and applied tariffs of up to hundreds of billions of dollars to each other’s goods.
“With Japan, the US has a deficit of US $ 48.6 billion in the first eight months of this year, an increase of 6.3% from the previous year, meanwhile, with the European Union, in the period from January to August, the trade surplus with the US reached 102.7 billion euros, and a trade deficit of 127.4 billion euros with China. Germany accounts for almost a third of the surplus with the US and has a very small deficit with China, which is 7.5 billion euros.
President Donald Trump’s administration also has a fairly wide trade deficit with its ally, Japan, by an independent analyst who focuses on the world economy, geopolitics and investment strategies.
Various factors cause their trade wars among them because the US considers China to engage in unfair trade practices such as intellectual property theft. Also, due to the widening trade deficit between the two countries.
The impact of the trade war itself is already felt in China and the US. Even to the point of threatening world economic growth and leading the world into recession.
But, until now there are still many who doubt that the main cause of the two countries’ trade wars is China’s trade practices and also the deficit. Because if it is indeed a deficit, the US in fact not only recorded a wide trade deficit from its transactions with China.