America v China: why the trade war won't end soon | The Economist

Share
Embed
  • Published on:  Thursday, November 14, 2019
  • America and China are edging closer to signing a deal in the trade war. But that won’t mark the end—the issues at the heart of the conflict will be very difficult to resolve. Read more here: https://econ.st/2qQItl6

    Click here to subscribe to The Economist on YouTube: https://econ.st/2xvTKdy

    The world’s leading superpowers are locking horns. Over the past 16 months America and China have been trading blows through tariffs on goods. The impact is being felt on industries worldwide. But what is the story behind the America-China trade war?

    So the trade war, what have you guys been looking at? The US doesn’t like that China is growing so fast and set to overtake America as the biggest economy in the world if it hasn’t already by certain measures. Basically China and the US are caught in this race of imposing tariffs on each other so the US slaps a high tariff on certain products then China retaliates.

    It’s multiple industries across multiple markets, it’s huge. And I think right now would be a really good time to look at what’s happened how it could impact the world from now on.

    At The Economist, we’ve been covering the trade war extensively Soumaya Keynes is our trade and globalisation editor based in Washington, DC.

    How did this whole trade war kick off? How did this whole trade war start? For a long time there have been frustrations that past American administrations had with the Chinese. On the 2016 presidential campaign trail you started to see some really tough rhetoric.

    China’s economic rise has been dramatic. In 1978 China’s GDP at market prices was just 6% of America’s. Last year it had grown to 66%. When considering local spending power China has already overtaken America. This unprecedented growth began with President Deng Xiaoping. He started opening up China’s economy to the world in 1978 and the country quickly became “the world’s factory”. Over the next decade, exports as a share of GDP tripled and by 1988 15% of China’s exports went to America. The World Trade Organisation opened its doors to China in 2001. And it was America that ushered it in.

    After joining the WTO, China became an economic superpower. But people had expected the country to also become more like a Western capitalist economy. That didn’t happen. America now claims that China achieved its growth by not playing fair. Are those claims justified?

    The Trump administration has been using tariffs or taxes on imported goods to try to force the Chinese to change their ways. In July 2018 America imposed tariffs of 25% on $34bn worth of Chinese products. That almost doubled the average tariff rate on Chinese imports from 3.8% to 6.7%. And it’s American firms that have to pay that tax. But with every increase from America, came an increase from China. Since the start of the trade war China has more than doubled its average tariff rate. America’s has tripled. The fight has become overtly political because China’s tariffs are hitting President Trump’s voter base. Many counties where Trump won in the 2016 election were here in the Great Plains and these are the counties most affected by China’s tariffs.

    As things stand now, a ceasefire in the trade war could be drawing near. The two leaders are hoping to agree on a “phase one” deal soon which could mean some tariffs being lifted The Trump administration wants China to buy more American produce and tighten up their intellectual property rules. If that phase one deal is signed will it be the beginning of the end of the trade war?

    Even if there is a phase one deal there will be a lot of issues still to be resolved. But there’s more to the trade war than just tariffs. America has also imposed restrictions on some Chinese firms especially ones in the tech industry.

    For more from Economist Films visit: http://films.economist.com/
    Check out The Economist’s full video catalogue: http://econ.st/20IehQk
    Like The Economist on Facebook: /TheEconomist/
    Follow The Economist on Twitter: https://twitter.com/theeconomist
    Follow us on Instagram: https://www.instagram.com/theeconomist/
    Follow us on Medium: https://medium.com/@the_economist
  • Source: https://youtu.be/ErwIlvQ_RVk

Comment

  • Majestic Company

    Majestic Company

     yesterday

    I’m so frustrated, I can’t tell if any news or analysis is objective. Excluding any subjectivity toward our current economic climate.

  • Money Mark

    Money Mark

     2 days ago

    You guys are getting so ABC I'm looking for IBD...

  • Enoch Brown

    Enoch Brown

     5 days ago

    I think America should wait until the Chinese are ahead of us technologically in every area and then steal all their technology. That way, they do all the hard work and we just feed off of them. Excellent plan, huh? LOL Actually this video doesn't shed any new light on the trade war. You could have gleaned all of this just by watching CNN.

  • nehru98

    nehru98

     6 days ago

    Stop trade war, star militay war

  • Bala Brazo

    Bala Brazo

     6 days ago

    Mitchell sister laught uma thrurman she China not war usa thouth uma thrurman she mitchell sister younger she laught bit Australia xean princesas princesas she use her Brazil breat smae usa Australia bot same younger sister laught uma thrurman smae ius latín América she thouth asían

  • Bala Brazo

    Bala Brazo

     6 days ago

    Mitchell sister use him thouth first smae usa Brazil cold most use uma thrurman thrurman sister laught her she from usa latín América she Russia got killed uma thrurman

  • Bala Brazo

    Bala Brazo

     6 days ago

    Mitchell sister laught Brazil usa most same cold winter Australia younger under leg bit uo chest lot younger

  • Bala Brazo

    Bala Brazo

     6 days ago

    Mitchell siste use bill bill side big Brazil Australia usa same both 2 latín Américan cold winter Australia younger hot warm

  • Bala Brazo

    Bala Brazo

     6 days ago

    Mitchell sister use Australia China americana greate life end all end asían all bear furure war no win sister use him thouth uma thrurman Australia sean bit hard neak she thouth uma thrurman sister

  • Bala Brazo

    Bala Brazo

     6 days ago

    Mitchell ask sister use him younger use both use name medusa 2 thouh name his Indiana bother smae familiar sister use same bother powerful uma l thrurman thouth first Asturias she xean his same first scound

  • ClarksonsinUSA

    ClarksonsinUSA

     7 days ago

    China has been at war with the US for 20 years,America is going to block access to the only market that matters!!!The American market! :)

    As the old developed world and China enters a demographic/economic death spiral!!


    Trump is breaking China's back,as China losses market share to other low cost exporters!!!!!!!!!!!!!!


    Trump is the Voice of the Heartland!!!!

  • Ali Karkhaneh

    Ali Karkhaneh

     7 days ago

    A weak report.
    You also must said that huawei is now an innovative company that surpassed any other company in 5G network. Trump feared huawei's innovations but they said to news that Huawei want to spy on US(without showing any evidence). But what I know is that it was White House that is spying on while the world from decades ago (even its allies, EU), and its evidences are publicly available on Wikileaks

  • Daniel Torres

    Daniel Torres

     7 days ago

    New Trade Deal: Am I a joke to you?

  • Lawrence Valencia

    Lawrence Valencia

     7 days ago

    Sorry suckers!! The trade deal is done!!

  • David Anderson

    David Anderson

     7 days ago

    I can't help but wonder if a new trade deal will have any kind of effect on our economy, whether it is now or in the future. If prices of Chinese products increase, manufactures will not come back here but simply move to another cheap labor country like Vietnam, Thailand and such. Aside from that, the new deal suggests China being required to buy $280 billion worth of american goods over the next 2 years, however it doesn't include removing the tariffs that are in place which are around $250 billion. So the two will balance each other out and the result is zero growth on our side. So I'm not expecting much to come from this, except this being a tool for Trump to get reelected in 2020. In my opinion, the only thing that will fix our economic problems in the long run, is a change in consumer attitude. Meaning we need to change our way of life. We need to change the way we shop and pay attention to where stuff comes from that we buy, buy only products that are Made In USA and boycott everything else. Thereby forcing manufacturers to start producing here again. Force our politicians to make doing business easier and cheaper here, particularly for small business which employs more that 70% of the American workforce. Put new regulations in place that will restrict the big banks and Wall Street. Traditionally we Americans look for the "quick fix" and the momentary gains which is an illusion, there is no quick fix. A quick fix is like taking Tylenol for the pain caused by a tumor.

  • Lydia Bell

    Lydia Bell

     7 days ago

    Listen to that "Global economy is slowing down because of the trade wars." Trumpsters , you reap what you sow.

  • Lydia Bell

    Lydia Bell

     7 days ago

    Are all of those "economists" at the Economist INTERNS?????

  • N4Z4R Gaming

    N4Z4R Gaming

     7 days ago

    They not steal they have idea to make the country best of the best maybe will become the first Asian country that beat USA. The economic will biggest double USA economy

  • Jiawei Ke

    Jiawei Ke

     7 days ago

    Stealing technology reminds me of plagiarism; which everyday people do all the time and they may prefer to call it collaboration instead. Being on YouTube actually facilitates and promotes such activities; since the moment a video shared; an idea is shared across the globe to different audiences that could all leave their mark; expressing their opinions in a form of a comment.

  • Nelson Hsieh

    Nelson Hsieh

     7 days ago

    U.S.-China military confrontation is the last resort. I believe that a continued U.S.-China trade war is the best policy. Only tariff increases can accelerate the withdrawal of foreign capital from China. The Chinese economy without foreign capital will collapse, and China's economic recession will not be able to enhance its defense capabilities.