US vs. China: A Trade War Begins

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					US vs. China: A Trade war begins

A trade war between the two equally powerful nations has begun again with the two titans trying to
snap the trading patterns.




The recent economic data has been positive and the investors across the world are hoping to see
brighter prospects that will help the economies to recover at a faster pace. The g lobal economy is
emerging once again, giving investors another reason to smile. However, analysts observe a change in
the trading patterns of two giant economies, the US and China, in particular. Disputes over trading
activities in the two nations may affect the recovery pace, predict analysts.

The US has slapped a 35% tariff on the tires imported from China. The US economy has realized that
importing made-in-China goods is affecting their domestic manufacturing sector with the local
manufacturers losing their jobs. Hence, the world’s biggest economy is planning to cut the trade cord
with the Chinese over the export issues.

Co-incidentally, the Chinese government has announced that it would probe into the option of clearing
the auto parts and chickens dumped by the US in the Chinese markets. The China government has now
put the ball in the US’ court after the US started enforcing and tightening the trade laws with an
objective to remain more competitive in the market.

Analysts fear that the implications of this trade war will harm the growing economy. According to
Michael Pento, chief economist at Delta Global A dvisors Inc, the US should have fair rules as far as
trading with the Chinese is concerned. Transparency in trading markets will help boost the economic
recovery of the country. “Our banker right now is the Chinese, and it's best not to bite your banker's
hand,” said Pento.

Hence, the two powerful countries involved in the trade dispute should remain alert as their impulsive
actions can have a derailing affect on the world trade and none wants that to happen all over again
after facing the bygone economic and emotional depression of 2008.


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Description: A trade war between the two equally powerful nations has begun again with the two titans trying to snap the trading patterns.