China-US Trade War Truce: An Example of American Resilience
The Trade War between the United States and China extends back to August of 2017 when Robert E. Lighthizer initiated a Section 301 investigation on China’s trade practices. In March 2018, the Trump Administration released a 215-page report concluding that China engaged in discriminatory practices that hindered United States Commerce within their country. Shortly after the reports were released, President Trump and the Chinese President, Xi Jinping, began imposing tariffs on each other. After the seven-month ordeal, while attending the G20 summit both presidents came to a truce.
According to Trump, China plans to cut the car import tax for American manufactured vehicles. The current tax on American car imports to China stands at 40%. This truce comes after Trump’s September plan to impose $200 billion tariffs on Chinese imported goods.
This trade war has taken its toll on the Chinese economy. China’s economy was already struggling with debt that increased by 250% and slowing investments. Trump saw this and implemented enough tariffs that broke down the Chinese economy. During this tense economic standoff, timing and decision-making were in Trump’s favor. Since the truce was announced, global markets have seen an increase after months of declining stocks.
This Trade War showed the unrelenting economic power that the United States holds against China. President Donald Trump fulfilled his campaign promise in showing that the United States will no longer be taken advantage of by China. While the mainstream media says that this truce “will not last long”, it is still something to be proud of. The White House avoided any further escalation of the situation and agreed to discuss with the Chinese president despite their differences. It is in China’s best interest for Xi Jinping to allow more room for discussion with the United States.