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

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

The world’s leading superpowers are locking horns Game on here, trade war between the US and China is here Over the past 16 months America and China have been trading blows… …through tariffs on goods We are looking at a reality that has a 25% tariff on every single product… …that would come in from China 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 We can’t continue to allow China to rape our country… …and that’s what they’re doing And so he gets into office, his United States Trade Representative… …that’s the kind of official trade negotiator… …they’re working on this big report So they’re essentially investigating China’s economic practices Essentially the question they’re asking is… …has China done anything that would frustrate America’s economic interests? And they find surprise, surprise—yes How long a history is there of these complaints the US has about China? These concerns go back for a really long time And I think to understand them properly… …you really need to go way back to the expectations that people had… …when China was thinking about entering the World Trade Organisation 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 Bringing China into the WTO is a win-win decision It will protect our prosperity and it will promote… …the right kind of change in China 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? To find out the answer, I spoke with David Rennie… …he’s our Beijing bureau chief There’s two ways in which China certainly hasn’t been playing fair One way is just that China treats Chinese companies differently So, if you are a Western business… …your Chinese competitor not only has better market access… …but maybe the land that it built its factory on was given for free… …maybe it got a giant tax break …China just doesn’t have a level playing field There’s then the really dirty stuff: stealing foreign companies’ technology If you asked Chinese officials about the accusation that… …China is stealing its way to the top… …they will say, well hang on, America steals secrets too So why are you coming after us? The American government will tell you sure, they spy and they steal stuff… …but never for commercial purposes With Donald Trump’s election in 2016… …you had a president who actually set about getting tough with China… …once he was in office and we never really had that before 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 Someone who knows all about the impact… …tariffs are having beyond the data… …is Chad Bown from the Peterson Institute for International Economics He’s been analysing international trade for decades… …but the trade war has put his research in the spotlight Some people have referred to it as my World Cup or my Super Bowl It’s something I’ve been studying in the background for 20 years And now all of a sudden the world seems to be interested in this What role do tariffs play in a trade war? Tariffs are basically a tax… …but it’s a tax that’s only paid for goods that are produced… …outside of the country, in a specific place One of the things that China has done in its tariffs is… …it’s imposed really high tariffs on American exports of soyabeans This is a huge product that farmers in Iowa and across the Midwest… …grow only to sell to China So, how are these tariffs and… …the trade war impacting the wider world economy? I think at some level we’re seeing the decisions that businesses make… …be affected by this Nowadays, they’re not sure what markets are going to be open to them… …in the future and that’s going to impact their investment decisions The International Monetary Fund, the IMF… …they expect economic growth to be a lot lower in the future… …because of the tensions arising during the trade war The global economy is slowing down… …and everybody’s increasingly concerned about that 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… 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? I took that question back to Soumaya The Americans are hugely ambitious for the kinds of changes… …that they would want from the Chinese but… …those ambitions I don’t think will be reflected… …in the preliminary phase one deal The Chinese government wants its economy to do well… …wants its citizens to get richer The extent that the Americans persist in demanding these big changes… …to the Chinese economy, it’s going to be really difficult to get a deal 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 We cannot allow any other country to outcompete the United States… …in this powerful industry of the future Specifically over one Chinese company Huawei can offer cheaper prices… …because they are heavily subsidised by the Chinese government We’ve made another film that looks closely at Huawei… …and why the West is worried about it It includes a rare interview with Huawei’s CEO Ren Zhengfei I do not really understand America’s political motivation And we looked into how these tensions will impact American industries… …already dependent on Huawei technology The biggest issue, I think, with all of this political turmoil… …surrounding the Huawei name is uncertainty You can watch the Huawei film right now by clicking on the link opposite If you want to learn more about the trade war you can click the other link… …where you’ll find all the research we used to make this film… …as well as other articles we’ve written… …including a special report by David Rennie And as always if you like what you saw, hit that subscribe button

100 thoughts on “America v China: why the trade war won’t end soon | The Economist

  1. tl;dr, The USA is mad that China isn't capitulating to it's autocratic decisions. China is fighting back and the USA doesn't think it can win anymore.

  2. The United States is the only superpower. China still needs 50 years. Now China is a developing country. The Chinese do not like any war.only some crazy people want war

  3. The American Market is 50% of Global Depsible income,were going to shut them/China out and shut them Down!!

    The American Economy is roaring!!!!!!!!!!!!

    Best Economy Ever,time to us Our Soft Power!!!

  4. World is divided between west and east. So keep business in the west and don’t send it to the communist east. Very bad business.

  5. Trump is a business man and he has no credibility at all.
    Don't try to fool anyone. The only fact is that the United States and China both are gonna be the big losers in US CHINA trade war. And the trade war is going to end. Priod.

  6. Here is a history note:

    From 1776 to 1990, US trade with China was ZERO. Yes, that is correct. The US became the worlds biggest economy, put a man on the moon and created free refills all with ZERO trade with China.

    Trump’s plan is very simple: ZERO TRADE.

  7. Thndrngest: the top echelon of the U.S. elites understand the potential of the Chinese, that is the reason to perpetually negating and vilifying China’s efforts in every which way they can. This is a real confrontation stemmed from this primal fear of not able to dominate any longer. China is liberating the entire non-western world, both in general physical living and people’s mindset, a quickening of human evolution.

  8. The so-called trade war between the U.S. and China has nothing to do with trade, “it has everything to do with China emerging as a rising world power,” according to an author and political commentator in Chicago. How about that? “It has everything to do with China emerging as a rising world power, economically, industrially, technologically, militarily, and the U.S. agenda is about China is to marginalize the country, to weaken it, to isolate it, to prevent China from overtaking the U.S. as a dominant world nation. The U.S. does the same things with other nations. This is what the U.S. is doing with Iran. Iran is a smaller country geographically and by GDP than China but it’s the same policy with Iran. The tactics differ country by country but the policy is the same. The U.S. wants to get rid of all sovereign independent countries. It wants to make them client states, vassal states. It wants to control them. Control their resources, exploit their populations – the same thing with all nations, independent or others," he said.

  9. Lemme guess I need to praise China now

    No matter, no matter at all, the PRC and the US both are basically just.. absolutely not

    Both will not last at the sole discretion of the human beings

  10. China needs the US market much more than US needs China market. US companies are leaving China and moving to other southeast Asian countries/India or they are just returning to an increasingly competitive US market to set up manufacturing. Until the balance of trade stops favoring China to the tune of multi-billions, this readjustment will continue.

  11. After this trade war , China is still growing fast as compared to USA.
    After this trade war China is still giving loan to other nations ,iran 400 billion dollar, Pakistan, Now Greece Piraeus port.
    On the other hand USA is increasing its Protection money which he takes from South korea, Japan.
    Now USA is asking for 8 billion dollars , Instead of giving 8 billion dollar to USA , Japan should strengthen its own military…

  12. Do any economists work at the economist, seems like a bunch of journalist copying and pasting, or did they let the communications intern lose

  13. Many thanks, but when Soumaya said "these concerns go back for a long time" I thought I would see something about those "historic" concerns.

  14. To talk about the China-US trade war with no interview of any Chinese economists, and all are still old excuses: Technology stealing, Compensation….Emm, only if you think it can make a country to grow fast.

  15. We all know that the CCP has a poisonous tear gas bomb. Why does the HK Gov still use it ?!!
    PLA needs you to organize a team to citizen arrest the chief of the riot police now !!!

  16. Who will win, long term? Ask the rest of the world. Practically all countries are building long term relations with PRC. Almost none with the USA. Everybody knows..

  17. Because it's an ideological war in that the United States wants to sanction and force countries to line up with a new world order (unified global economy and banking) led and implemented by it, and it will continue all means from sanctions to wars until it accomplishes it.

  18. America sermonising about fairness is like China sermonising about democracy.😒this video is pure eye roll material…use of debt to enslave, resurrecting and protecting strongmen, industrial espionage…where do they imagine the Chinese learned all these techniques? They are certainly not home grown…most of China’s thousand year history was inward looking. America’s rather infantile argument can be summed up as “no cheating unless it’s is us doing it (best)”. Chins has some way to go…they haven’t physically kidnapped scientists under color of war reparations…or assassinated them.

  19. Disengage from china!!! It is time to stop fueling the ccp military … Either they adhere to our fair standards or we cut them off at the hips …

  20. The world is watching trump's impeachment. China is NOT GOING TO RELENT to trump. Not only that, Hong Kong is in a recession. That will trickle down to the rest of the world.

  21. @4:07 I read China has a govt dept where they have spies out to vacuum up info for this dept then asks – "what company would benefit most from this new stolen tech?" and shares it with the appropriate chinese co.

  22. US capital let China grow up to a superpower and bite back to US. Tesla will move its headquarter to China. And China government gave them a lot of benefits. Because if Tesla goes there, all Tesla vendors will move their companies to China. Very smart strategy.

  23. AMERICA es un CONTINENTE compuesto por 35 países y más de 1000 millones de habitantes pobre gente estúpida ignorante dan lástima

  24. End with reciprocal tariffs or zero offshore banking protection. Your country isn’t reciprocal, corporations will not enjoy zero tax rates of offshore banking. China didn’t do it, our politicians made those bad deals. New Rules!

  25. The introductory opinions expressed describing the nature of the 'trade-war' illustrates just how clueless supposed educated people are about the nature of the dispute.

  26. A worthless production predicated on anecdotal cliche and commonly held, but incorrect, opinion rather than objective evidence-based fact. The Economist's standards have taken a gigantic tumble from those of the past.

  27. This isn't about the US not wanting China to take over on the economic level, this is about a free society wanting to ensure freedom remains alive, against a totalitarian society. The only people who aren't Chinese that defend China are those profiting from China's market, and blatantly ignoring the human rights abuses committed by the Chinese government. This isn't propoganda, these are plain facts.

  28. The music is too loud over the conversation. We are after facts and opinions, and there is no need for dramatic effects with audio or visual effect. Btw, big fan of Economist. I think the Economist podcast is probably more of my cup of tea.

  29. America can't make the Chinese goods, and the Chinese won't buy American services. China has cheated by making many cheap, substandard goods, and the USA has used its military might to bully nations into buying from it. China will increase its military to match the USA, but it better adopt democracy to solve its shoddy goods and corruption problems. If it doesn't adopt democracy, it will have no allies to cooperate with them. The USA has to start MAKING things again, not just relying on its high tech and services. This will require education, re-training, and much more workplace discipline. Actually immigration and emigration will create "Chimerica".

  30. if you ask the Chinese Officials about the accusation that China is stealing its way to the top. they'll say, oh hang on, America steal secrets too. so why you coming after us.
    The American government will tell you, sure, they spy and steal stuff, but never for commercial purposes.

    With Donald Trump's selection in 2016, you have a president who actually setting back, getting tough with China once he was in office and we neveer really had that before.

    The Trump administration has been using tariffs or taxes on imported goods to try to force Chinese to change it's ways.

    In July 2018 American imposed a tariffs about 25% on $34 billion worth of Chinese products. that almost doubled the average tariff rate on chinese imports, from 3.8% to 6.7%. but it's American frims that have to pay that tax.
    2018年7月,美国对价值340亿美元的中国产品征收约25%的关税。 几乎使中国进口商品的平均关税税率提高了一倍,从3.8%提高到6.7%。然而美国公司不得不为这部分税收买单。

    But with every increase from American came increase with China. Since the start of the tariff war, China has more than doubled it's average tariff rate, American's has tripled.

    the fight has become overly political, becasue China tariffs are hitting President Trump's voter base.

    many counties were Trump won in 2016's election were here in the Great Plains and these are the counties most effected by China's tariffs.

    Someone who knows all about the impact tariffs having beyond the data is Chad Down from the Peterson Institude for International Economics, he's been analysing international trade for decades, but the trade war has been put research in the spotlight.
    彼得森国际经济研究所的查德·唐(Chad Down)是了解数据以外的所有影响关税的人,他数十年来一直在研究国际贸易,但贸易战已成为人们关注的焦点。

    some peopole have referred to it as my World Cup or my Supre Bowl it's something I've been studying in the background for 20 years and now all of a sudden the world seems to be interested in this.

    what role do tariffs play in the trade war?
    Tariffs are basiclly a tax, but the tax are only be paied for the goods produced outside the country, in specific place.

    one of things China have done in its tariffs is it imposed really high tariffs on American exports of soyabeans. this is a huge product that farmers in Lowa and across the Midwest grow only sell to China.

    So how are these tariffs and the trade war impacting the wider world economy?
    I think at some level we're seeing the decisions that bussiness make be affected by this. Nowadays, they are not sure what markets gonna open to them in the furture, that's gonna impact their investment decisions. the International Monetary Fund – IMF, they expect the economic growth to be a lot lower in the future because of the tensions arising during the trade war.The global economy is slowing down and everybody is increasing concern about that.

    As things stand now, a ceasefire in the trade war could be drawing near.

    The two leaders are hoping to agree on 'phase one' deal soon which could mean some tariffs being lifted.

    The Trump Administration wants China to buy more American products and tight up their interlectual property rules.

    if the that 'phase one' deal assigned, will that be the beggining of the end of the trade war? I took that question back to Soumaya.
    如果“第一阶段协议”签署了,那将是贸易战结束的开始吗? 我把这个问题带回了Soumaya。

    Americans are hugely ambitious for the kinds of changes that they would want from the Chinese, but those ambitions I don't thinks will be reflected in the prelimiary 'phase one' deal. the chinese government wants its economy to do well, wants its citizens to get richer.

    To extent that the American persist in demanding these big changes to the chinese economy, it's really difficult to get the deal.

    even there is 'phase one' deal, there will be a lot of issues still to be resolved.

    but there is more to the trade war than just tariffs. American also imposed restricts on some Chinese firms especial ones in the tech industry.

    We can not allowed any other country to outcompete US in this powerful industry of the future.

    specificlly over one Chinese company. Huawei can offer cheaper prices because they are heavily subsidised by Chinese government. we've make another film that looks closely at Huawei and why the West is worried about it.

    It includes a rare interview with Huawei CEO Ren Zhengfei.

    I don't really understand America's political motivation. And we looked into how these intensions will impact American industries already dependent on Huawei technology.

    The biggest issue, I thinks, with all of this political turmoil surrounding the Huawei name is uncertainty

  31. Gee, China not playing fair in economic growth? Does any country (especially the USA) play fair when it comes to the economy or Capitalism? I mean, the very nature of Capitalism is unfair.

  32. The former Alstom SA executive Frederic Pierucci was whisked away from his airplane, accused of financial misdeeds and thrown in jail, just for the US can buy 75% of their electricity company, Huawei‘s CFO is being arrested for somehow helping Iran evacuate US sanctions. Talking about play fair with the US is the biggest joke of the century

  33. as a chinese, we know that this trade war would have only truces, no end for any time soon as long as americans believe we chinese got where we are today by stealing something from the usa, or by cheating america on something. so far in disputes, america has hurled a lot of accusations but never really any tangible evidences. of course, just look back at history, when did america ever need evidences to make accusations? of course the bottomline is the politics.

  34. "huawei … heavily subsidised by chinese government"? with such primitive thinking, like religion without facts, the trade relationship between two countries would only get worse, not better.

  35. We sold out to china and that is the only reason why their coutry started booming was because of OUR wealth and our companies and OUR people buying and trading their goods…. Most of these one sided trade deals have been put in place by our government without our consent… Meaning we do not need China to survive. But like a virus… China defiantly needs us to survive.

  36. as a Canadian I am tired of buying Made in China, its so called cheaper but is is junk.
    when it breaks down throw it away, its cheaper to buy another one and the cycle just keeps repeating itself

  37. We need to stop doing business with COMMUNIST CHINA, because they're waging economic and information war on us and have been for decades.

  38. Why should China give U.S. land to build U.S. factories on? Do U.S. companies deserve free land because they are a superior race?

  39. The trade war won't end until either China get rid of the CCP, or the US get rid of the Wallstreet. It's a fight between the global elites, while we, the people, just got caught in the crossfire. But somehow, we suffered the most.

  40. war trade against the US middle class has been going on for last 3 decades! As soon as the tariffs threaten our swamp's profit, "trade war doom and gloom" started!

  41. Democratic liberals call it a trade war. Because Democratic liberal elites that's started the globalization have to move production with Chinese communist party companies to another country, what trade war not for USA but for Democrats and Chinese communist party yes

Leave a Reply

Your email address will not be published. Required fields are marked *