US & China Trade War Triggering Economic Slowdown worldwid
Rate Race Among Capitalist to capture world trade
Trade war is at its peak after the Corona epidemic between China and the US.
America is a democratic country while China is a communist. There were Ideological differences over economic, political and business in both countries for a long time.
The Corona epidemic has added fuel to the fire and now Donald Trump is threatening that he will end his political and economic relationship with China. This is an alarming for the entire world economy.
China has emerged as a strong economic economy in the last 20 years and it has miraculously lifted over half its population from severe the poverty line.
People of China are getting rich and there is more consumption of milk, eggs, meat and rice and the demand for these items is increasing continuously.
China’s pork consumption has increased very rapidly by manifold in recent time. Therefore, China is also buying large quantities of soybeans from other countries, which is the main diet of pigs.
There has been a big boom in the consumption of food items in China.
America is already in the forefront of consumption. Now China too has taken hold of America.
Therefore, both countries are importing and exporting huge quantities of goods and services from each other.
There is a huge amount of labor available in China. Therefore, from the cost point of view, China’s goods are the cheapest in the whole world.
That’s why America also buys its everyday items from China at cheap prices.
But for the past few years, the trade deficit of America with China is increasing. Meaning America is buying more goods from China and selling fewer items to it.
Due to which there has been an imbalance in import-export and the revenue deficit is increasing.
Therefore, America imposed a huge amount of tax on goods made in China so that people would buy them less and increase the demand for domestic items. But China also did not lag behind in this matter.
China also imposed a huge amount of tax on goods made in America and their demand was reduced in China as well.
Means like tit for tat. Due to Corona epidemic, there is a lot of conflict in both the countries.
China has a monopoly on goods due to cheap cost on world trade, and now when everything stopped in China due to Corona epidemic, the supply chain of goods all over the world came to a standstill.
Therefore, many countries now want to end this monopoly of China and start buying goods from other countries. This is a good opportunity for India to strengthen its Make in India process.
But we have to become professional like China. The cost, design and quality of goods will have to be taken care of, only then we can increase the growth rate of our economy by capturing a large business share.
But this road is not easy for India. China is very strong economically and diplomatically.
In the last 10 years, many Chinese companies have joined the top 10 companies in the world. Such as Petro China, Bank of China, Sinopec, China Life Insurance Company.
The real war is going on between China and America. America has elections in November 2020 and there is a lot of pressure on Donald Trump to improve employment and economic condition.
If it is not controlled soon, he can lose the election.
Therefore, the corona virus and the upcoming elections are intensifying this trade war.
America is accusing China that China is responsible for Corona spreading. Due to this, the whole world has suffered losses.
The US is also preparing to take China to the International Court of Justice. While China has repeatedly denied these allegations.
The world is already moving towards recession due to falling prices of crude oil and worldwide COVID-19 spreading.
And now this trade war between two powerful countries can lead the world to a big and stable economic recession.
As the ideology may be democratic or communist, but the real battle is going on among the capitalists of both countries to occupy the world’s trade.