China and the USA have been in a trade war for the last two years. Global Market Share is seeing fluctuations because of the trade war. The USA has accused China of unfair means of trade and exports across the globe. Both the countries are accusing each other in terms of economic games that they are playing.
China accuses the USA of curbing its rise and growth to become a global economic power. Since most of the item is made and manufactured in china, it has established itself as one of the very strong players in the economy business across the globe.
Whereas on the other hand, the USA has said time and again that China is using many unfair means and practices to expand its business worldwide.
Tariff Game Of Two Economic Giants
The USA wants its citizens to buy American made products more than any other imported ones, especially Chinese. So, the US government has imposed a duty, in fact, heavy-duty on Chinese imported products. This would discourage the USA citizens from going for imported products, and the sale of domestic American products will be more.
On seeing this, the Chinese government also applied the same rules to the American made products which were sold in China. There are only big players in terms of the imported things which are sold in China from the USA.
Consequences- Global Market Share
The automobile companies like Ford, Harley Davidson, etc. are big players that sell their products in China. So, china increased the import duty on these products to discourage its citizens from buying American products.
This did not go down well with the USA. Now the situation is that both counties have very high import duty on foreign products to discourage their consumption. This has taken a toll on the overall global market.
Exports And The Future
China has fallen in the export sector for the fourth consecutive time. China is the second-biggest economy in the export sector in the world currently. And it has failed to increase its exports fourth time; this is not good news for China and also for the global market, which is dependent on the Chinese economy.
Recently in the month of November, the chines export fell by almost 1.1 percent. On the other hand, the USA economy is not doing too good, either. The USA faced a decline in the export sector by almost 23 percent.
The falling of exports of such big economies has taken a toll on the world economy, and the trade experts do not see a brighter future in terms of the world economy.
Future Of The Trade War
Both China and the USA are negotiating deals with each other to come to a common point of agreement. It is becoming difficult to live the world economy due to the two giants failing regularly. A recession in the market is expected to hit if the two countries do not lift the economic slowdown. This will have an effect on each and every country of the world as every country is interdependent on these two economic giants for trade and commerce.