Question

The United States and China have been engaged in an escalating trade war over the last several years. Prepare a 2-3 page paper that describes who have been the winners and losers in this trade war and what would be the best approach to de-escalate the tension. You are expected to provide your original thinking and analysis on the papers and are required to provide citations for any sources used.

I am just looking for key points to expand upon thank you.

Answer 1

Trade conflicts are harmful to the world.Vietnam has benefited from the trade war between US and China.In order to overcome US tariffs , some distribution are being moved by the companies from China to Vietnam. The investment in Vietnam is on the rise and US is importing 40%more from Vietnam.As a result Vietnam's export to the US is increasing .Vietnam's economy had a 7 % growth rate in 2019.. So Vietnam is the winner from trade. However , the European Union are losers.The European Union's dependence on trade for economic growth is enormous and the conflict between the two countries had been a matter of concern .Exports from EU account for 40% of its GDP and so trade war might affect the future of the EU.Within the union Germany will be worst affected.German jobs are dependent on export market.Again Germany does a good business with China and this has risen about 1000% in the two decades .Thus Germany might lose the market of China .US is the biggest purchaser of German goods.The demand for German goods has fallen in US because of the conflict.Tariff has also been imposed on EU auto exports.However the decision that EU will import American beef is a good move.So the US trade war with China will impact countries globally for good or for worse.

At the beginning of 2020 , the world's top super powers, US and China, were thinking of decoupling .Decoupling or separating of the two super powers would result in a greater global recession than 2008 financial crisis.In order to prevent de-escalation of the trade war between the two, multinational companies should follow co-opetition ie cooperate and compete.To compete a company must innovate and make investment in training ,education and infrastructure.So multinational companies can prevent separation or decoupling in this manner.I personally believe that this conflict should end for the betterment of the world economy.

Citations-Winners and losers of trade war between US and China.

Citation