Tensions between the United States and China have risen lately. Moreover, the blame game between the two superpowers continues amidst the coronavirus. Read ahead to know more. Also, find out how a trade war between the two can affect the world economy.
Unrealistic Terms Now Made Impossible
The trade issues between the United States and China were quite high even before the pandemic began. The phase one in January reduced some of the tariffs each side placed on the other.
According to BBC, Beijing avoided additional taxes on almost $160 billion worth of goods. Moreover, China announced that it would buy $200 billion worth of US goods and services in 2020 and 2021 as well.
Also, the buying target set by China seemed unrealistic when it announced it. Moreover, the deal of buying US goods and services has become impossible now due to the pandemic that originated in Wuhan, China.
An Internal Wave In China
Many economists say that Beijing still wants to work out the Phase 1 deal. Moreover, it wants to purchase the promised amount of US goods and services. Furthermore, Chinese Chief Trade Negotiator, Liu He recently spoke to US trade officials to create an environment that will resume the deal with mutual benefits.
Moreover, the pandemic has created an anti-US sentiment towards China. According to Reuters, Chinese Trade officials are having difficulties to commence any trade deals with the United States.
Also Read: Trump Threatening Of China
Both countries are trying to resolve their trade issues. Moreover, a trade war between the two will affect the world economy adversely. Already many countries are seeing a recession due to the pandemic. No one wants to see a trade war that will further destroy the economy of nations globally. Its time they peace out.