Trade War – The United States is ready to put anything on the line in order to defend its national security in accordance with the constitution, but is the feeling of being threatened by its own trade partners the best way to assume a course of action?
American politicians made a grave mistake when they predicted that the Xi government in China will finally be followed by democracy in the country because the living standards of the people continue to rise, and they will soon become aware of their right to have a democratic vote. Such a motive, however, has been absent from the plans of the Chinese government, which has continued to capitalize on weakening US relations with its allies in becoming the greatest economy in the world.
China is by far the biggest economic rival the USA has today, but their industries are also very interdependent. As of now, the trade deficit of the USA with China stands at $375 billion and the Trump administration is imposing tariffs on $50 billion worth of goods to protects its own domestic industry. What makes a trade war possible is the diplomatic gesture of President Trump, who puts more of the blame onto previous presidents instead of on the Chinese government.
The Xi administration has made it a necessity to continue investing in projects involving developing Artificial Intelligence and Robotics. In addition, the organizations such as Shanghai Cooperation and China-Pakistan Economic Corridor along with the construction of the Silk Road is opening incredible channels of trade for China, and it is projected that its government will not fade away from slapping tariffs of its own.
With continuous trade tariffs being imposed on both sides, the result can be a decisive trade war between the two which can have drastic effects on the global economy.