• Latest
  • Most Read
china, usa, trade

Trump, China and the trade games

5 years ago
5 Inventions that failed to serve their purpose

5 Inventions that failed to serve their purpose

2 hours ago
Pan INDIA movies have been a disaster this year, and the reason is apparent

Pan INDIA movies have been a disaster this year, and the reason is apparent

2 hours ago
Morgan Stanley gives double thumbs up to Modinomics

Morgan Stanley gives double thumbs up to Modinomics

2 hours ago
Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

4 hours ago
Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

19 hours ago
Best Indian TV Serials

5 Best Indian TV Serials of the 90s that people still crave for

1 day ago
Inspector Avinash

“Inspector Avinash”: Randeep Hooda Shines in a Hidden Gem of a Web Series

1 day ago
Sakshi Murder case

Nikita, Shraddha and now Sakshi – How long will this go on?

1 day ago
Karnataka congress

The Game of Thrones in Karnataka that will cost Congress dear

1 day ago
What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

2 days ago
Rewriting Bharatvarsha’s History, the Modi Way: A Symbolic Shift towards Cultural Awakening

Rewriting Bharatvarsha’s History, the Modi Way: A Symbolic Shift towards Cultural Awakening

2 days ago
Randeep Hooda’s Transformational Acting in “Swatantrya Veer Savarkar”: A Game-Changer

Randeep Hooda’s Transformational Acting in “Swatantrya Veer Savarkar”: A Game-Changer

2 days ago
Ram Charan’s “The India House”: A Nightmare for Leftist Intelligentsia

Ram Charan’s “The India House”: A Nightmare for Leftist Intelligentsia

2 days ago
10 Best Emilia Clarke Movies

Exploring the Magic of Emilia Clarke: Top 10 Best Movies to Watch

3 days ago
28th May 2023: A Historic Day for India, A Nightmare for the Leftists

28th May 2023: A Historic Day for India, A Nightmare for the Leftists

3 days ago
  • About us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI हिन्दी
TFI Global
Thursday, June 1, 2023
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

    Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

    Sakshi Murder case

    Nikita, Shraddha and now Sakshi – How long will this go on?

    Karnataka congress

    The Game of Thrones in Karnataka that will cost Congress dear

    Rewriting Bharatvarsha’s History, the Modi Way: A Symbolic Shift towards Cultural Awakening

    Rewriting Bharatvarsha’s History, the Modi Way: A Symbolic Shift towards Cultural Awakening

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Morgan Stanley gives double thumbs up to Modinomics

    Morgan Stanley gives double thumbs up to Modinomics

    Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

    Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

    Vada Pav is Just the Tip of the Iceberg: A look into the rich culinary delights of Maharashtra

    India’s Resilience: A Zero Percent Chance of Recession

    Indian PSUs

    Once a butt of all jokes, Indian PSUs are posting better results than Fortune 500 companies

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Modi is the boss

    Modi is the boss: “Vedic Mantras” and an ocean of crowd: PM Modi’s Australia tour will echo till eternity

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    NIA High Commission in UK

    NIA will probe the attack on Indian embassy, in UK!

    UK Student Visa rule new

    UK Student Visa Rules: International Students Barred from Bringing Families

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    5 Inventions that failed to serve their purpose

    5 Inventions that failed to serve their purpose

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    5 Accidental Inventions

    5 Accidental Inventions that have become essential in our lives

    Sengol Tamil Nadu real picture

    What is Sengol: Tamil Nadu Connection, History, Significance and why it is to be installed in New Parliament

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Pan INDIA movies have been a disaster this year, and the reason is apparent

    Pan INDIA movies have been a disaster this year, and the reason is apparent

    Best Indian TV Serials

    5 Best Indian TV Serials of the 90s that people still crave for

    Inspector Avinash

    “Inspector Avinash”: Randeep Hooda Shines in a Hidden Gem of a Web Series

    Randeep Hooda’s Transformational Acting in “Swatantrya Veer Savarkar”: A Game-Changer

    Randeep Hooda’s Transformational Acting in “Swatantrya Veer Savarkar”: A Game-Changer

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

    Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

    Sakshi Murder case

    Nikita, Shraddha and now Sakshi – How long will this go on?

    Karnataka congress

    The Game of Thrones in Karnataka that will cost Congress dear

    Rewriting Bharatvarsha’s History, the Modi Way: A Symbolic Shift towards Cultural Awakening

    Rewriting Bharatvarsha’s History, the Modi Way: A Symbolic Shift towards Cultural Awakening

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Morgan Stanley gives double thumbs up to Modinomics

    Morgan Stanley gives double thumbs up to Modinomics

    Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

    Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

    Vada Pav is Just the Tip of the Iceberg: A look into the rich culinary delights of Maharashtra

    India’s Resilience: A Zero Percent Chance of Recession

    Indian PSUs

    Once a butt of all jokes, Indian PSUs are posting better results than Fortune 500 companies

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Modi is the boss

    Modi is the boss: “Vedic Mantras” and an ocean of crowd: PM Modi’s Australia tour will echo till eternity

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    NIA High Commission in UK

    NIA will probe the attack on Indian embassy, in UK!

    UK Student Visa rule new

    UK Student Visa Rules: International Students Barred from Bringing Families

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    5 Inventions that failed to serve their purpose

    5 Inventions that failed to serve their purpose

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    5 Accidental Inventions

    5 Accidental Inventions that have become essential in our lives

    Sengol Tamil Nadu real picture

    What is Sengol: Tamil Nadu Connection, History, Significance and why it is to be installed in New Parliament

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Pan INDIA movies have been a disaster this year, and the reason is apparent

    Pan INDIA movies have been a disaster this year, and the reason is apparent

    Best Indian TV Serials

    5 Best Indian TV Serials of the 90s that people still crave for

    Inspector Avinash

    “Inspector Avinash”: Randeep Hooda Shines in a Hidden Gem of a Web Series

    Randeep Hooda’s Transformational Acting in “Swatantrya Veer Savarkar”: A Game-Changer

    Randeep Hooda’s Transformational Acting in “Swatantrya Veer Savarkar”: A Game-Changer

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
No Result
View All Result

HOME » Politics » Analysis » Trump, China and the trade games

Trump, China and the trade games

Yash Joshi
by Yash Joshi
27 October 2018
in Analysis
0
china, usa, trade

PC:Google News

301
VIEWS
Share on FacebookShare on Twitter

There couldn’t be a more apt example of a fall from grace, than that of the Chinese stock market. Chinese stock market has witnessed losses in excess of 30% since the onset of 2018. It unsurprisingly was also the worst performing market in 2018 and Donald Trump had a major role to play in it.

It is no secret that China has in past and present exploited the intellectual property rights to gain undue advantages, especially when it comes to the transfer of technology. USA’s love affair with China started after the Cold War and suddenly aiding China’s economic rise became a matter of national interest.

China through the USA gained entry into prestigious organisations like the World Trade Organization. The USA held hope that as China became prosperous, it would also pursue economic and political liberalization which was underlined by former US President Bill Clinton when he envisioned a China, which will have “a future of greater openness and freedom for the people of China.” Needless to say, this was not the case and in fact, The Communist Party of China only tightened its grip on the nation. The trade pacts were heavily skewed in favour of China and it was not long before it started challenging the position of USA as the World’s foremost superpower.

Barack Obama failed to act on the Chinese aggression and the subsequent militarization in the South China Sea, a corridor through which one-third of global maritime trade passes, while arguing that the World had much to fear from a weakened and threatened China than a rising one.

Donald Trump had made it clear in his presidential campaign, that if elected President, he would seek a fair trade deal with China and the current status-quo would end. By embarking on a trade war with China, he is now trying to renegotiate the trade pact with China. It all started with the USA slapping a tariff on $34 billion of Chinese goods which went into effect on July 6 and has seen the two countries engaging in a tit-for-tat tariff, which now applies to goods totaling close to a whopping $300 billion. China is already facing the heat from this trade war as it recorded a GDP of 6.5% in the third quarter, its lowest since the aftermath of the 2008 financial crisis.

The longer this trade war drags, more will be the losses for both nations. While the USA too will be impacted economically but unlike China the Donald Trump led USA stands to lose more politically rather than economically. This trade war couldn’t have come at a worse time for China as it is increasingly unprepared to take the USA head-on for tit-for-tat tariffs. China’s rapid growth in the past decade is owed to its rapid investment in infrastructure but it came at a cost. The cost of rising debt burden on the Chinese economy. Just as Chinese authorities were helping the country move towards a more sustainable model of growth by basing the country’s economy on its rising consumer class rather than investments in infrastructure, in an attempt to clear its mountain of debt, the tariff has acted as a death knell to the country’s attempt at deleveraging. As China tries to come to terms with the trade war, it is forced to loosen its grip and infuse its market with liquidity which is evident from the sanctioned cuts on reserve requirement ratios for banks which in turn ensures that banks have more money to lend out and hence end up raising the debt.

It is increasingly clear that China’s deleveraging has been halted which might prove disastrous for the country. It is estimated that the pause to remove debt, will increase the debt to GDP ratio by 12.3 percentage points to a whopping 274.5 per cent by the end of this year. China’s $10 trillion dollar shadow banking system will only worsen the health of its economy with the possibility of people getting credit through it and causing a leakage in its economy.

Another factor that can threaten to plunge the Chinese market further into the bear market territory is the forced sale of company shares. It is a common practice for Chinese companies to use their shares as collateral for loans, but with falling share prices and economic slowdown, the companies are forced sell their shares so as to maintain a certain level of balance in brokerage accounts. The economic slowdown has led to shares worth about 4.18 trillion yuan put up by various companies as collateral for loans amounting to about 11% of the country’s stock market capitalization. At present, the stocks of 600+ companies have fallen to the level wherein they would be forced to sell their shares.

China was once famed for its dirt cheap labour which saw many companies migrate to the land of the dragon in hopes of availing cheap labour. However, that is a thing of the past as China is undergoing the phenomena of “Lewis turning point”. This point is a situation in which the excess labour trapped in agriculture shrinks, pushing wages higher and ultimately eroding the country’s competitive advantage in labour-intensive industries. China’s labour has now become more expensive than India, Indonesia and Vietnam. India’s rapidly growing economy and low labour costs is yet another headache for the country.

The dragon picked up a war it couldn’t afford to fight and is now paying for it. China recently announced the lowering of tariffs on 1,585 products which cover metals, textiles, minerals, machinery and electrical equipment, goods which have all been the target of US tariffs. This move has brought down the overall tariff level down to 7.5% from 9.8% last year. It is increasingly looking likely that the USA will win the trade war especially on the back of China cutting tariffs on most imported vehicles, auto parts and medicines.

While no country can afford to let the trade war drag on, without bleeding out their respective economies, but it’s an effort to finally tame the dragon and make the trade game a fair one for everyone. While this might be a little too late as China has already gained significant benefits from the skewed trade deal, but if Trump manages to coerce China to renegotiate the deal, it would be one the greatest achievements of his Presidency.

Tags: #USAChinaLabourTrade agreementTrump
Share97TweetSend
Previous Post

Opposition claims, Telangana govt. misusing state machinery for snooping on political opponents

Next Post

Hamid Ansari sparks controversy again, targets Sardar Patel at book launch

Yash Joshi

Yash Joshi

Aspiring Civil servant ,hell bent on bringing about a positive change in India .

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

5 Inventions that failed to serve their purpose

5 Inventions that failed to serve their purpose

1 June 2023
Pan INDIA movies have been a disaster this year, and the reason is apparent

Pan INDIA movies have been a disaster this year, and the reason is apparent

1 June 2023
Morgan Stanley gives double thumbs up to Modinomics

Morgan Stanley gives double thumbs up to Modinomics

1 June 2023
Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

1 June 2023

Popular This Week

Nawazuddin Siddiqui interview
Cinema

Dear Nawazuddin Siddiqui, you’re a one hit wonder, so just shut up

by Animesh Pandey
26 May 2023
Indian PSUs
Economy

Once a butt of all jokes, Indian PSUs are posting better results than Fortune 500 companies

by Animesh Pandey
26 May 2023
Bollywood actors who are now thriving in other professions
Cinema

Bollywood actors who are now thriving in other professions

by TFIPOST News Desk
26 May 2023
Ram Charan represents Indian cinema at G20 Summit
Politics

PM Modi Picks Ram Charan Teja over Bollywood Khans to Represent India at G20 Summit

by Animesh Pandey
24 May 2023
Inspector Avinash
Cinema

“Inspector Avinash”: Randeep Hooda Shines in a Hidden Gem of a Web Series

by Animesh Pandey
31 May 2023

©2023 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFI Official Merchandise
TFI हिन्दी
TFI Global
  • About us
  • Careers
  • Brand Partnerships

©2023 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost