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TRADE WAR UNITED STATES VS CHINA - Coggle Diagram
TRADE WAR UNITED STATES VS CHINA
Main characteristics of this conflict
The U.S. increased tariffs and raising other trade barriers to force China to change (what the U.S. considers to be) unfair trade practices.
China become an economic potential country because of forming part with WTO (World Trade Organization)
US President Donald Trump has long accused China of unfair trading practices and intellectual property theft.
China economic evolution
Since China become part of the World Trade Organization (WTO) its economy has grown rapidly leaving a universal record.
Also, with annual gross domestic product (GDP) growth averaging 9.5% through 2018,
China would be the most economically powerful country and would also surpass the US, its longtime rival
In addition, according to studies, the official currency of China, the yuan, can become the new universal currency
When did the trade war of these countries start?
1979
US and China reestablished diplomatic relations and signed a trade agreement.
China past from having 6% of universal economy to 66%
US wanted to be the only country with a grown economic, but the chinese we're really close to them.
How companies are affected by the trade war?
U.S. companies lost at least $1.7 trillion in the price of their stocks
Chinese companies, must offset part of the tariff impact by reducing their own profit margins.
If the value of the Chinese currency falls it will drag othe currencies down and could affect corporate profits un the Us.
Consequences
This trade war cost the U.S. economy $316 billion by the end of 2020,
This conflict made automobiles entering the country from 15% to 40% in retaliation to U.S. tariffs.
Tariff increases currently in place will slow global GDP growth by around 0.7 of a percentage point.
Affecting many industries in all countries around the world.