Will the US - China Trade War Go Downhill? - written by 10108 Park Hye-in

Will the US - China Trade War Go Downhill?

written by 10108 Park Hye-in

In August 2018, President Trump ordered the US Trade Representative to investigate China's unfair trade practices and violation of intellectual property rights. The USTR originally submitted a report to the president in March 2018 stating that China's industrial policies violated US trade laws by transferring or stealing intellectual property and advanced technologies, and President Trump announced a tariff policy on Chinese goods on March 22^nd.

The United States and China have imposed tariffs on each other three times since July 6^th. The US imposed tariffs on imports worth $250 billion, and China imposed ones worth $110 billion. President Trump said that if China imposes tariffs on US agricultural products, they would impose additional tariffs on imports of $267 billion.

As the trade war between the US and China is becoming more serious, experts say that the damage on the real economy is gradually becoming a reality. The International Financial Center's report titled The Real Economic Impact of Trade Conflict's showed that the overall trade war between the US and China has slowed the real economic indicators.

The Organization for Economic Cooperation and Development said it would lower its global economic growth forecast due to the trade war, and that the IMF would also lower its global economic growth forecast, saying that it damages not only trade but also investment and manufacturing. Despite the advice of international organizations around the world, the US and China continue to clash without compromising about each other's opinions.

On October 11^th, Trump announced his stance to continue the trade war, saying there are many measures that could give a great deal to the Chinese economy. In an interview with Fox, Trump said, "The US high tariff policy on imports from China has greatly influenced China. The Chinese economy has been very depressed, and there's a lot more to do.”

This is quite the opposite of China's opinion. China suggested that the US should resolve the trade dispute through dialogue, saying that the US cannot put pressure on China.

"We hope the US will not misjudge the situation and stop putting pressure on China and return to the mutual cooperation path," said Gao Feng, a spokesman for China's Commerce Department said in October.

Meanwhile, the G20 summit in Buenos Aires, Argentina, will be held in November, could be the key to resolving this problem.

In response, Larry Kudlow, White House head of the National Economic Council told CNBC, "It is better for the leaders of the two countries to meet and talk to each other than not to meet at all."

Kudlow assessed the possibility of easing the trade war between the two countries.