The Effect of United States and China Treat of Trade War

An interpretation of trade war is not just about trades between nations, but mostly, it is about the political interest of both countries leaders wanting to show the world how powerful and threatening they are when it comes to politics and the protection of their citizens.  Example is the US decision to impose countervailing tariff duties on the sale of imported photovoltaic panels from China.  Other leaders from developed and developing nations anticipated immediate response from China in like manner, but it appears as if China is taking a different approach, because it is no secret that China is equally capable of imposing countervailing pressure on the United States as well. 

President Barack Obama hosts Chinese President Hu Jintao at a working dinner in the White House

On the other hand, China announcement of increasing the tariffs on imports of U.S. chicken parts that would not have a huge effect on the total flow of goods between both countries but a patent of an unraveling trade relationship.  Notwithstanding, China’s Ministry of Commerce announcement of imposing an anti-dumping tariffs ranging from 43.1% to 105.4% on imported chicken parts from the United States is another political jargon because China’s production of chicken isn’t nearly enough to satisfy its domestic market; in recent years, the US has been the source of about half of China’s imports of chicken feet. (Austin Ramzy – Time.com) 

At work in a Chinese solar-panel plant

Both nations, The United States and China are the world’s largest economics and any trade war could mean industrial hardship, because there relationships are the most important of share resources in the 21th century.   Both countries have benefited from trading and also been hurt from the export growth rates.  China has comparative advantage to produce photovoltaic panels that are of good quality and price we could not get here on the market.  These low priced panels drive down the cost of alternative energy, increase its market share and help achieve the goals for reduced greenhouse gas emissions and more sustainable energy production.  On the flip side, there has been an uncooperative disproportion in trade relationships with China. China continues to create barrier and  access to the US markets to sell its goods, yet it protects its home markets and manufacturers in ways that disadvantage US companies from seeking entree to the growing Chinese market.  Such irregular trading behavior could result in trade war that possibly would not be beneficial for both countries.   Another effect could be harder economic times with emerging markets that are finding it difficult with their chances and other protections in the struggling developed markets. To reduce the barrier of trade and level the playing field with China, other countries need to reduce the exported energy supplies which China has an insatiable appetite for to keep its export economy growing fast enough to withstand the macroeconomic adjustments taking place around the world.  If the US market goes slow it is something the world will be concern about, likewise if the Chinese economy is in a downward trend it becomes worrisome and require immediate attention.