America v China: why the trade war won't end soon | The Economist

Share
Embed
  • Published on Nov 14, 2019
  • America and China are edging closer to signing a deal in the trade war. But that won’t mark the end-the issues at the heart of the conflict will be very difficult to resolve. Read more here: econ.st/2qQItl6
    Click here to subscribe to The Economist on TVclip: econ.st/2xvTKdy
    The world’s leading superpowers are locking horns. Over the past 16 months America and China have been trading blows through tariffs on goods. The impact is being felt on industries worldwide. But what is the story behind the America-China trade war?
    So the trade war, what have you guys been looking at? The US doesn’t like that China is growing so fast and set to overtake America as the biggest economy in the world if it hasn’t already by certain measures. Basically China and the US are caught in this race of imposing tariffs on each other so the US slaps a high tariff on certain products then China retaliates.
    It’s multiple industries across multiple markets, it’s huge. And I think right now would be a really good time to look at what’s happened how it could impact the world from now on.
    At The Economist, we’ve been covering the trade war extensively Soumaya Keynes is our trade and globalisation editor based in Washington, DC.
    How did this whole trade war kick off? How did this whole trade war start? For a long time there have been frustrations that past American administrations had with the Chinese. On the 2016 presidential campaign trail you started to see some really tough rhetoric.
    China’s economic rise has been dramatic. In 1978 China’s GDP at market prices was just 6% of America’s. Last year it had grown to 66%. When considering local spending power China has already overtaken America. This unprecedented growth began with President Deng Xiaoping. He started opening up China’s economy to the world in 1978 and the country quickly became “the world’s factory”. Over the next decade, exports as a share of GDP tripled and by 1988 15% of China’s exports went to America. The World Trade Organisation opened its doors to China in 2001. And it was America that ushered it in.
    After joining the WTO, China became an economic superpower. But people had expected the country to also become more like a Western capitalist economy. That didn’t happen. America now claims that China achieved its growth by not playing fair. Are those claims justified?
    The Trump administration has been using tariffs or taxes on imported goods to try to force the Chinese to change their ways. In July 2018 America imposed tariffs of 25% on $34bn worth of Chinese products. That almost doubled the average tariff rate on Chinese imports from 3.8% to 6.7%. And it’s American firms that have to pay that tax. But with every increase from America, came an increase from China. Since the start of the trade war China has more than doubled its average tariff rate. America’s has tripled. The fight has become overtly political because China’s tariffs are hitting President Trump’s voter base. Many counties where Trump won in the 2016 election were here in the Great Plains and these are the counties most affected by China’s tariffs.
    As things stand now, a ceasefire in the trade war could be drawing near. The two leaders are hoping to agree on a “phase one” deal soon which could mean some tariffs being lifted The Trump administration wants China to buy more American produce and tighten up their intellectual property rules. If that phase one deal is signed will it be the beginning of the end of the trade war?
    Even if there is a phase one deal there will be a lot of issues still to be resolved. But there’s more to the trade war than just tariffs. America has also imposed restrictions on some Chinese firms especially ones in the tech industry.
    For more from Economist Films visit: films.economist.com/
    Check out The Economist’s full video catalogue: econ.st/20IehQk
    Like The Economist on Facebook: TheEconomist/
    Follow The Economist on Twitter: theeconomist
    Follow us on Instagram: theeconomist
    Follow us on Medium: medium.com/@the_economist

Comments • 2 223

  • Scott Espeseth
    Scott Espeseth 10 hours ago

    These kids are CLUELESS as to the reality of what this is all about.

  • Asad Baloch
    Asad Baloch 14 hours ago

    China = New Nazi's

  • Edruezzi
    Edruezzi 17 hours ago

    Actually, China would be far wealthier had it liberalized its political system and society a lot more.

    • Edruezzi
      Edruezzi 10 hours ago

      @Amy Goodman Some of the richest students on American college campuses are the children of wealthy Chinese. Most of their parents did not become wealthy because of connections with the West.

    • Edruezzi
      Edruezzi 11 hours ago

      @Amy Goodman Very few Chinese are starving right now, and its middle class is as large as the United States and Germany combined. China meanwhile has almost as many billionaires as the US. Had Mao not have imposed Communism and hence the Great Leap Forward and the Cultural Revolution, China would be far ahead of where it is now.

    • Amy Goodman
      Amy Goodman 12 hours ago

      It would probably mean filthy rich for 1% of its people with resources and connections from the west and 90% left to starve, then 9% middle class. I mean it's China, its simply different from anything I know. I don't think anything that works great in the west would even make sense there.

    • Edruezzi
      Edruezzi 15 hours ago

      @wktjan4286 By liberalization I mean democratic reforms.

    • wktjan4286
      wktjan4286 16 hours ago

      No "Liberalized" means surrendering the market to western companies.

  • Jason Chen
    Jason Chen 20 hours ago

    After watching this video, I just wanna laugh... Is this a fake Economist channel?

  • 櫻井ピーター
    櫻井ピーター 20 hours ago

    The reason why the trade war won`t end is four-fold. 1) The U.S. does not understand the real cause of the trade imbalance. 2) The Chinese believe they are doing the right thing. 3) The U.S. does not know the Chinese mindsets. 4) The U.S. is not negotiating but demanding. The U.S. needs trade experts with high negotiation and closing skills plus Chinese language proficiency, otherwise the two countries are getting nowhere for another decades. Many readers may be offended but the U.S. needs to do the right thing before it is too late.

  • Yuki V
    Yuki V 21 hour ago

    Absolutely, the American people need to think why their great presidents spent money on war rather than developing economy.

  • Sontjer Ryan
    Sontjer Ryan 23 hours ago

    As honest as Trump said that The United States can't allow any other countries to outcompete itself in all industries and fields, thus whoever challenges its position in the world would face penalties, like imposing tariffs, or even resorting to direct military confrontation.

  • Kai Guo
    Kai Guo Day ago

    In 2019, Does anyone still believe in that any economists work at the economist?

  • Aramsa Wafer
    Aramsa Wafer Day ago

    Is it a sin to get richer ... is it only American can get rich? Is it wrong, it China is doing better economically and if does, then the US will deal with China squarely, like they did to Japan and France. Typically a hypocrite.

  • Aramsa Wafer
    Aramsa Wafer Day ago

    "....sure they steal and they spy, but never for commercial purpose....". They steal and spy to knock you out.... this is the stealing and spying by the US. Typically a Hypocrite.

  • box box
    box box Day ago

    Cold War 2: Trade Edition

  • Rameez Hussain
    Rameez Hussain Day ago

    America is cancer

  • The Barnyard
    The Barnyard Day ago

    Weak

  • 侯昶曦
    侯昶曦 Day ago

    Wasting time, I am surprise that The Economist made this poor video.

  • xiu chen
    xiu chen Day ago

    where the Taiwan province on the map?

    • S S
      S S 23 hours ago +1

      commies dream

  • Julio Porras
    Julio Porras Day ago +4

    “China wants to get its citizens richer” ?? Do you even know anything about China my dude? This video is missing a lot of of insight..

  • Eric Schoeman
    Eric Schoeman Day ago

    whats happening is they are still trading but both are just taxing the poeple and they dont want you to know ..think about it the rest is kust noise to destract

  • jamesmdii
    jamesmdii Day ago

    Why should China play fair? Is it not right for a country to support her own industries? For China to give breaks to her own companies is in the interest of the Chinese people. All's fair in a game of greed; that's what capitalism preaches, no? I don't blame China for doing what she does for the furthering of her own interests.

  • Temujin
    Temujin Day ago

    Americans are really brainless, I can't believe I wasted my time watching this garbage video with nothing but biased politics.

  • JackManic1984
    JackManic1984 Day ago

    just stop all trade with China. Don't buy from em, Don't sell too them. The market will adjust it always has.

  • samuel mcgill
    samuel mcgill Day ago

    what we are seeing, looking at the stock and bond market is how much we dont need china F,ing us anymore.a year ago the libtards said the world is going to end because trump put pressure on china.the sky hasnt fallen yet,chicken little.

  • Oscar Orozco
    Oscar Orozco 2 days ago

    I am dump,, and you guys make me dammer, with this globalism BS..no thanks

  • someakatsukifromcanada 9

    Lets take a look in comparison:
    China: No Human Rights
    USA: Lots of Human rights
    Leftists cannot defend china unless they wanna sound like Hypocrits.

  • Adewale Adeyemi
    Adewale Adeyemi 2 days ago

    I see the economist, i see CNN, FAKE NEWS!!

  • Norene Garcia
    Norene Garcia 2 days ago

    China-imposes tariffs on US goods, makes It hard to do business in China, pressures US corporation to submit to the one party ideology and steal IP for DECADES
    US- we going to start imposing Tariffs back
    China-you just want to topple are economy!!!
    Not a Trump supporter but I’ll support him on this. It’s a no brainer

  • Xin Huang
    Xin Huang 2 days ago

    Can not understand why the western always being so arrogant and not willing to take the fact of China become stronger.

  • FREE HONG KONG
    FREE HONG KONG 2 days ago +1

    Because even though China is maybe the second most powerful country right now that spends billions on fake islands (in other peoples waters ) spends billions on space exploration .spends billions on expanding its empire, spends billions on military, spends billions on dodgy loans to poor countries etc
    they still claim they are a developing country that needs special deals and discounts on trade .But now the US has said no more special treatment they are a rich country not a developing country so they now have to abide by the same rules as the other richer countries .

  • Clinton Neal
    Clinton Neal 2 days ago

    Bill Clinton also gave north Korea nuclear power and he said this will ensure world PEACE!!!! HAHHAHAHAHHAAH

  • Blank
    Blank 3 days ago

    To bad this is just hurting Americans and not china. How Chinese no longer do business with American companies they now manufacture and use smaller countries like Vietnam to ship their products to america so they by pass the tariffs. Since america is playing by the rules and china isnt america will only hurt the longer it goes china isnt even flinching. If we want to beat them where it hurts we must automate all manufacturing leaving china bringing more higher paying jobs to America and lowering prices our selves. Doing this will make china crumble how we no longer import $500 billion of china trade which is 15% of Chinas entire trade as well we no longer manufacture in china so they lose money there too. American manufacturing companies contribute 20 - 30% of chinas entire gdp from manufacturing. Cut trade automate manufacturing or moving else where will bring china to its knees, bring millions of high paying jobs to America and strengthen new ties with other nations as we move manufacturing to them like in mexico or Africa.

  • Peter Phrakaysone
    Peter Phrakaysone 3 days ago

    It is time to reduce the volume of trade with China .China cannot be capitalist and communist at the same time .The world must be free and not to be under dictatorship from anybody.

  • Rob Kitchen
    Rob Kitchen 3 days ago

    Facebook helped oppressive governments identify people who posted criticism of the anti- freedom dictatorships/religion.........so that Facebook could continue to access that population..... America should have taken control over any corporation that helps oppressive governments that abused basic human rights........oh wait...our 1% has done that thoughout the Americas.....were hypocritics....having no moral ground to hold any one or any country to any standard of decency.....

  • dicetaro
    dicetaro 3 days ago +1

    B I A S E D

  • Wynette Greer
    Wynette Greer 3 days ago

    China is in trouble, speak the truth,

  • Md.Rony Rasal
    Md.Rony Rasal 3 days ago

    USA we can call Sea locked country.Most of the country away from USA. So no need to USA in Asia,Africa,Middle east,Europe.Forget USA

  • Pastor / Prophet Limen k Kenneth

    China and USA are not equal. China is just force to take responsibilities . The USA build China and the USA needs to hold China responsible because China does not have a system of check and balance .
    We can forget about China if USA decides to fight China just by removing its manufacturing units from China then China is gone

  • jasper budiono
    jasper budiono 3 days ago

    Trump: TRADE WAR!!!!
    China: You are fired.

  • aiko banagan
    aiko banagan 3 days ago

    I think us should ban china pruduct

  • SugarTomAppleRoger
    SugarTomAppleRoger 3 days ago

    The US should look to itself. Americans consider China and Russia as their only threats. One day, the EU will become an economic presence also.

  • Kangbo Liao
    Kangbo Liao 3 days ago

    If you are not going to explain the reason but just make a statement, don't add that 'why' in your title duh

  • dan
    dan 4 days ago

    I thought you would give answers instead of interviewing some students

  • kitsuneichizoku
    kitsuneichizoku 4 days ago

    Nothing absolutely learned from this video. I should have watched a cat video for the same length.

  • Gabou
    Gabou 4 days ago

    if the person being interviewed doesnt have rinkles then i dont trust them

  • John W
    John W 4 days ago

    feels more like just more US propaganda and china bashing....

  • Wilson Hsu
    Wilson Hsu 4 days ago

    at least you need to learn to respect others. the Chinese map you post was wrong.

  • Hwi Lee
    Hwi Lee 4 days ago

    西方人已经习惯了这个世界由他们说了算。哈哈哈哈。可怕。

  • Kenn Smith
    Kenn Smith 4 days ago

    Clinton as usual was totally wrong about China and the WTO he was wrong about many things and as it turned out he was just trying to pad his bank account at the peoples expense...he was terrible and his old lady Hillary scary thing that she was, had she been elected America would be a ghost town....these greedy self righteous psychopaths only think of themselves and other greedy corporate elites who only see profit as a means to exist in the world. At the same time they blame pollution and a declining earth on the public when it is them that have caused the loss of our ecosystems.

  • Kenn Smith
    Kenn Smith 4 days ago

    I love Chinese girls...send more

  • Bonnie Wilson
    Bonnie Wilson 4 days ago +1

    Put tariffs on all trades going out ...I'm tired of being others slaves...

  • 秦晓伟
    秦晓伟 4 days ago

    Take a walk through China and the United States and discover that China is much more advanced and modern than the United States

  • Ali Dangou
    Ali Dangou 4 days ago

    internet was not made for Media bias

  • 売春婦
    売春婦 4 days ago

    low iq american

  • CHARLIE WANG
    CHARLIE WANG 4 days ago

    Are you teaching me ABC?

  • 08 Jack
    08 Jack 4 days ago

    every day we said "china"

  • Ochie Ng
    Ochie Ng 4 days ago

    Trump said same complaints against Japan in 1990s

  • Alan Growlin McBride

    Baizuo (white left) - “only care about topics such as immigration, minorities, LGBT and the environment” and “have no sense of real problems in the real world”; they are hypocritical humanitarians who advocate for peace and equality only to “satisfy their own feeling of moral superiority”; they are “obsessed with political correctness” to the extent that they “tolerate backwards Islamic values for the sake of multiculturalism”; they believe in the welfare state that “benefits only the idle and the free riders”; they are the “ignorant and arrogant westerners” who “pity the rest of the world and think they are saviours”

  • Larkinchance
    Larkinchance 5 days ago +1

    When you out-source jobs to exploit cheaper labor markets for short term profits, you lose control of your technology and in the long run, you lose the cutting edge needed to catch up. Thank you Wall St.

  • Jeffrey Chen
    Jeffrey Chen 5 days ago

    so many mainland sympathizers here....

  • Billy Taylor
    Billy Taylor 5 days ago

    I see China as an enemy

  • Billy Taylor
    Billy Taylor 5 days ago

    BILL CLINTON sold out the USA