The United States as a Global Superpower
The United States takes pride as one of the most formidable forces on earth for the last century. It has amassed significant power and asserted its position as the superpower. This position has pitted the country against many opponents in the past on various kinds of wars. Some of such wars involve subjects like terrorism, global warming, science, and trade. The most recent one is the trade war with China, a nation that threatens global domination on the economic scale.
The Trump Administration's Actions
The Trump administration has taken various actions that sought to put pressure on China in a bid to control pertinent issues such as business malpractice. For instance, many of the Chinese firms have been involved in the stealing of trade secrets from American companies through hacking and other criminal activities (Thrush and Rappeport). In addition, many of American goods face trade barriers in China. The administration seeks to pressurize the Chinese government to reconsider its position concerning policy formation in order to restore a balance of trade (Aleem).
Chinese Intellectual Property Concerns
One of the most significant causes of the trade war is the Chinese policy that works against American intellectual property concerns. The Asian giant requires that companies operating in the country give up secrets regarding their designs and other product-related information. Moreover, many of the products from the United States face harsh economic barriers that make their entry into the Chinese markets difficult (Thrush and Rappeport). On the other hand, Chinese firms have always found ways to avoid tariffs imposed on products originating from China using other third-party business partners such as Vietnam. The shipments from China through the Vietnam route have increased by 165.4% since July of 2018 (Rapoza). According to the Trump administration, such practices have led to the increase in trade imbalance by 18.1% at $55 billion. This figure has been the highest the last decade.
Trade War and Huawei
Companies such as Huawei have been placed at the center of the trade war with the government of the United States instigating a ban on most of its products. This move inspired similar action in American partners in Europe, Canada, Australia, and New Zealand (“Why are countries banning Huawei?”). The company has been accused of taking part in spying for the Chinese government and companies by placing listening devices in the equipment sold to companies outside China. Many cases have been reported in news from different countries bearing the details (Liao). FBI, NSA, and the CIA presented a unanimous message that Americans should stop using Huawei and ZTE phones because of the threat of spying on citizens (Vincent).
Trade Policies and Sanctions
The failure to observe trade policies placed by the United States is part of the reason for the trade war. The United States international policies prevent its partners from trading with countries facing sanctions. Chinese firms have found ways to circumvent such policies and partake in questionable businesses such as assistance in spying on citizens (Arthur). The countries involved are Iran and North Korea. The Arrest of Meng Wanzhou, the daughter of Huawei’s founder, in Canada for contravening U.S trade sanctions is one of the major events in this trade war (Zimonjic, Simpson and Parry). China threatened Canada of “unnamed consequences” if they fail to release her.
Economic Impact and Uncertain Future
Trade wars always have winners and losers on the economic front. The two nations have the largest economies in the world. Therefore, this war is likely to have ripple effects in other partnering nations across the globe. The answer as to whether China will reconsider its trade policies is yet to be seen in the future.
References
Aleem, Zeeshan. The US-China trade war, explained in under 500 words. 6 July 2018. Web. 12 Dec 2018. .
Arthur, Charles. Huawei, sanctions and software: everything you need to know. 8 December 2018. Web. 12 December 2018. .
Liao, Shannon. The Pentagon bans Huawei and ZTE phones from retail stores on military bases. 2 May 2018. Web. 12 December 2018. .
Rapoza, Kenneth. Trade War Update: China Subverts Tariffs, Trade Gap Gets Wider. 10 December 2018. Web. 12 December 2018. .
Thrush, Glenn and Alan Rappeport. Trump Administration to Step Up Pressure on China. 11 December 2018. Web. 12 December 2018. .
Vincent, James. Don’t use Huawei phones, say heads of FBI, CIA, and NSA. 14 February 2018. Web. 12 December 2018. .
Why are countries banning Huawei? 7 December 2018. Web. 12 December 2018. .
Zimonjic, Peter, Katie Simpson and Tom Parry. China's threats over Huawei CFO's arrest rattle Canadian business. 10 December 2018. Web. 12 December 2018. .
