America country of Democracy, Globalization and Free Market. America gave hope to millions of people to come explore and become part of its Society. It gave Ideas, thoughts, Ideology. It wanted a free liberal Trade world with the foundation of Democracy. They thought economic liberalisation would eventually lead to political liberalisation. But The Factory of the World China has changed this perception. Cheap Dumping of Goods, One Party Rule, Suppression of Human Rights to Human Dignity China has become a threat to Free Market to Globalization.
They have an ambitious programme of “island building” in the South China Sea, to re-enforce its territorial and maritime claims with all the neighbours land, air, water encroachment. The broader goal is to end US dominance of the western Pacific the site of the world’s most important commercial sea routes. And the message One Party, Confucian Ideology the alternative for Western Democracy.
America has $375 billion deficit with China last year and China is very smart not to give access to America in its land. So President Trump accused China of “raping” the United States. His America First policy has made U.S.-China trade tensions unavoidable.
Trump based his campaign on a promise to return economic prosperity to the U.S. Rust Belt, where manufacturing jobs have dried up, or been “stolen” by China. Recently he announced they would levy tariffs on imported solar panels and washing machines, arguing that “increased foreign imports of washers and solar cells and modules are a substantial cause of serious injury to domestic manufacturers.” Further President Trump’s plan to impose heavy tariffs on imported steel and aluminium. The U.S. leader said he was slapping tariffs of 25 percent on imported steel and 10 percent on aluminium, temporarily exempting big steel producers Canada and Mexico. Then there’s the intellectual property theft investigation against China, or Section 301, the findings of which should be released soon. Commerce Secretary Wilbur Ross made clear that the White House intends to scale up its fight over intellectual property theft.
In response, China’s Ministry of Commerce (MOFCOM) called the move “an abuse of trade remedy measures.” “There are no winners in a trade war, and it would bring disaster to our two countries as well as the rest of the world,” Minister of Commerce Zhong Shan said at a briefing on the sidelines of China’s annual parliamentary session. “China does not wish to fight a trade war, nor will China initiate a trade war, but we can handle any challenge and will resolutely defend the interests of our country and our people,” he said.
However, their Commerce minister reiterated Premier Li Keqiang’s promise to liberalize the manufacturing industry and expand the opening up of sectors such as medical care, education and new energy vehicles. They pledged to give equal treatment to domestic and foreign businesses alike.
It is analyzed that China is also prepared to fight America, as America’s largest trading partner, the fastest-growing market for U.S. exports and the third-largest market for U.S. exports in the world. As America promises or threatens to withdraw aid from countries ranging from the NATO alliance to Pakistan, China has begun a $1 trillion effort to underwrite global infrastructure. And as Washington turns away from trade deals such as the Trans-Pacific Partnership, Beijing has been busily filling the void with regional partners, such as Vietnam, that might prefer the United States as their primary economically but are left with China by dint of America’s retreat. China owns more than a $1tn of US debt. It has threatened to sell US Treasuries.
It is said that the Tensions will be suffered by Apple, Boeing Intel, Qualcomm, U.S. Soybeans, Walmart to name few. But putting tariffs on U.S. exports is a gamble for China. It could backfire on the Chinese economy by decreasing competition and threatening jobs. President Obama slapped a 35% tariff on Chinese tires in 2009, China imposed penalties on U.S. shipments of chicken parts and cars.
The Ball has come to US President Donald Trump Court now and he has exercised very powerfully. He has killed the biggest technology deal in history, citing “credible evidence” that suggested a threat to his country’s security. By blocking the $117 billion takeover of Qualcomm Inc by Broadcom Ltd. He said he would leave no stone unturned to stop China from getting any edge in critical technology. And such attempt, if made, would be nipped in the bud in the name of “national security”.
At Last, I can say that as America and China confront over trade, territory and ideology India as largest Democracy is ok with America than China which dumps from Cheap House Hold Goods to Machinery to Telecom Products to Ideology. China has already created ruckus by building infrastructure in South Asia especially in Srilanka to Maldives to Nepal. This can have an effect not only trade but also on the security of India. As recently China was spying African Union Leaders Computers for negotiations. Now a Trade War with America will have an adverse effect as many goods can enter shores of India.
Already Swiped Industries due to China are forget Mobiles, TV’s which are coming but H.T. Insulators Chinese Imports 98.17%, Bicycles 95.06%, PVC/Plastic Suitcases 94.07%, Terry Towel 94.3%, Boilers 88.36%, Footwear except Leather 82.23%, Leather Shoes 74.48%, fans, mixers & grinders, tube truck, Telephone instruments including mobile phone and accessories, glass sheet are already dominated with more than 65%. In Major basic goods in terms of value imported from China are aluminium, copper and copper products, aluminium sheets/plates, foils, carbon blocks, wires copper and cement all kinds.
Capital Goods: H.T insulators, boilers, grinding wheels, packing machinery, air conditioner, electric printers, industrial blowers, forklift, transformers (small), loaders, dc motors, air break , turbines and accessories and others Intermediate Goods: The import of intermediate goods have grown faster than the domestic production, and the imports of intermediate goods from china have grown even faster than the import index intermediate goods which china got hold are parts bicycles, auto ancillary and parts, dyes, welding rods, straw and paper boards, glass bottles, lens of all kinds, colour tv picture tubes, lens of all kinds and ic chips and transsisors.
In Consumer Goods: The imports of consumer durables is growing at much faster rate than even the other use based industries and therefore pushing the share of consumer the items where the china’s share in total imports of the respective items is rising are bicycles, pvc/plastics, mixers & grinders, s air conditioners, razor blades, pens, leather garments, wallets, purses, motorcycle, pressure cooker, vitamins, motorcycles, cycle/rickshaw, battery charger.