The US and China have been in a large-scale trade war for a few years now. The two countries have slapped numerous tariffs on imports, resulting in significant damage to traders on both sides. However, the tensions are not limited to trade, and the two countries are continuing to clash while trying to assert political dominance.
What is the Current Situation?
The trade war between the two nations began in 2017 when the US announced new tariffs on Chinese imports, and China imposed a new tariff policy in retaliation. The US government announced another set of tariffs soon after, leading to a full-scale escalation of the issue. In recent months, both sides have indicated that they were willing to negotiate to reduce the tensions. However, there has been no concrete development, and the ongoing pandemic has only escalated the problem even further, as the US government continues to blame China for the outbreak of disease. Recently, President Trump has even decided to curb its funding to the World Health Organization (WHO) and blamed the UN agency for not holding China accountable.
Moreover, the two parties have also been trying to assert their dominance in the South China Sea. China’s illegal activities in the area have irked the US government, prompting the US to increase its naval presence in the region. However, China is continuing to claim control over the disputed islands. If the two countries are not able to settle their differences, this political conflict will not resolve anytime soon.
But the problems do not stop there. In July, the US accused two Chinese hackers of trying to hack international companies for a coronavirus vaccine. The US also decided to shut down China’s consulate in Houston, in an attempt to protect American property and citizens. This did not sit well with China, who has since threatened to take countermeasures unless the US takes back its orders. However, the US has not backed down, adding to the growing divide and tensions.
Learn More with EXIMA News
At EXIMA, we dedicate ourselves to providing our users with the latest international trade information. For more articles like this one, make sure to check out the rest of our News Page!
