How the Trade War Between U.S. and China Changes The Global Economy
Donald trump, America president, initiates a trade war will profoundly reshape the global economy. It is necessary to make preparation for it. The brief analysis of the power of change caused by the trade war and some possibilities which may happen in the future is as follows. Several trends have been accelerated as a result of the trade war for some time. Think of the following questions.
Chinese flag, Beijing, China. 2009 Photo/Daderot
The size of Asia’s import market reflects its growing, vibrant and growing consumer market. From the angle of private consumption expenditure, Asia is the same with the United States. However, the biggest difference is that growing speed of private consumer spending in Asia is twice faster than the rate of the United States. Asia’s growth rate is three times that of the United States if excludes Japan. With the development of economy, Asia’s consumption of foreign products is also growing year by year. From clothing and shoes, to electronic products, to pharmaceuticals and foods, foreign goods are increasingly imported into China. Similarly, demand for Chinese products from the European Union and the United States is increasing, Such as Chinese e-commerce platform: DHgate, Sales of its products are also increasing year by year
According to the database from the World Bank’s WDI and Eurostat, China is more striking. China’s private consumption expenditure has grown by an average of 13.8% per year, is four times faster than the United States in the past decade. It is not strange that China is now the largest market for many countries, including Australia, Brazil, Russia, South Africa, South Korea and Indonesia. As long as the present growth rate of imports in the US and China remains the same in the following years. By 2021, China will surpass the United States to become the world’s largest import market. Among them, the sales platform for foreign goods is also increasing. Fashion dresses are becoming more and more attractive to Asians. Asians, especially some rich ladies and celebrities spend a lot of money in the consumption of luxury fashion clothes.
According to data from the International Monetary Fund and the Commercial Analysis Bureau of the US Department of Commerce, this is only three-year -journey. Under the background of the strong trend, the trade war initiated by Trump is yielding new power to speed up market opening and establish closer economic connections.
This will lead to faster trade growth between the EU and Asia over the past 10 years, and increase of the investment at the same time. Owing to the policymakers is exploring a way to quickly track regional free trade agreement, people almost in any place outside the United States become anxious.
For example, after Trump exited the Trans-Pacific Partnership, in March this year, 11 countries on both sides of the Pacific signed a successor to the Trans-Pacific Partnership Comprehensive Progressive Agreement.
photo Kai Stachowiak
In Asia, China and Japan are trying to repair the relationship-gap, the region including China and the comprehensive economic partnerships have been regarded as important steps for Asian economic integration. Therefore, the direct consequence of the trade war initiated by Trump is accelerating the shift of the global economic center to Asia. This development has profound commercial implications in turn. As Europe and Asia establish closer economic ties, their tariffs on exports to each other will fall.
Companies will have to adapt to increasingly fierce competition for efficient, innovative and motivated in the increasingly open markets. Since the 1980s, the global supply chain network will expand which completely changed the nature of trade and investment. The United States is shrinking at the same time while 326 million US consumers are increasingly being “protected.” More than four billion consumers in Europe and Asia will benefit from competitiveness and creativity, enabling them to enjoy cheaper and fine goods.
