Sino-American trade war
Between China and the United States, the atmosphere has not been the best in recent years. On the contrary, it is a kind of cold war that has taken place between the world's first economic power and its runner-up. The economic clash has broken out under the presidency of Donald Trump. A real tax war with huge consequences for the economies of both countries. Years after it began, are Sino-American trade relations still at a dead end ?
The nerve of the "war"
It was in 2018, that the trade arm wrestling between Washington and Beijing began, in a context of cold relations between China and the United States. It was the US government that struck first. Former President Donald Trump began with a series of accusations about Chinese trade deals and their disloyalty. He followed that up with threats. Finally, he made strong decisions.
The U.S. government imposed heavy tariffs on a number of Chinese goods. Washing machines and solar panels from China were taxed at 30%, spare parts taxed at 30%, Chinese aluminum at 25% and steel at 10%. Very soon, China retaliated. American sorghum was outright banned from Chinese territory. Then it was the turn of more than a hundred American products to be taxed: wine, pork, some fruits. The economies of both powers have obviously suffered a lot. American farmers were the first to complain.
Has calm been restored ?
A semblance of calm has been restored, a few months after the first consequences of this trade war. The first tariffs imposed on both sides were reduced in the year following the taxations. We can therefore say that trade relations have been revived. They will certainly be cleaned up now that Donald Trump has been replaced by the new US president Joe Biden. Chineses and Americans will surely find a way to end the trade tensions that have been going on for four years.