Economics

Chinese Economy VS. U.S. Economy

The U.S.-China trade war has escalated in 2018 after President Trump announced his intent to impose high tariffs on some Chinese goods. In response, China reciprocated with imposing tariffs on American goods, leading to a state of anticipating a trade war that may put the global oil markets at risk. China has a winning “debt” card that, if used against Washington, would shake global markets.

The U.S.-China relations are highly complicated. Politically, the cooperation is still ongoing between the two countries on several issues, but economically, the trade competition is intensifying. The volume of trade with other countries during 2017 was quite similar for both countries with a slight increase in favor of China. Meanwhile, there was a surplus in the Chinese trade balance as opposed to a deficit in the U.S.