China… the upcoming war: The Sino-American economic conflict

By: Syrializm Analytics

 

The US-China trade war, which is now one of the most influential issues on international politics, continues.

The United States hasn’t only raised tariffs on Chinese imports to the United States, but has also reached the point where Chinese companies and specific Chinese products are subject to various sanctions, not only rising customs duties, but even preventing them from entering the United States and imposing sanctions on Chinese companies, under No Activity Status in the United States.

By nature, China responded to US moves by imposing customs duties on US goods and even toughening the laws on the work and activity of US companies operating in China.

Of course, not to exaggerate what is going on between China and the United States, at least in terms of being transparent, the goal of US President Donald Trump of all this, according to his remarks is that the purpose is to reform and balance the Trading balance between the United States China, which favors China by more than 500 billion dollars, in addition to the addition of three hundred billion dollars to China, according to Trump, from what he called China’s “robbery” of US patents.

China compels and procures US companies by acquiring them On techniques and of the software technology of America, which is well-known US companies to develop these technologies, so that these companies have to give China these technologies in exchange for access to the Chinese market, which is an important goal for most of the US companies in general, because of the magnitude and the volume of revenue that US companies will achieve.

The US president finds that his country suffers from a trade deficit of up to 800 billion dollars to China, which requires him to take measures to modify the balance.

But there is another explanation, although the president’s actions have received many criticism from within the United States, as many US policymakers, politicians and economists have commented on the US president’s war on China as a mechanism and policy by Trump that will inflame a trade war with China that will not provide the desired results.

The decision-making circles remind the US president that these methods haven’t brought any good to the United States through history, but it only brought disaster to the United States and its economy over the years, and therefore different behavior should be taken with China to adjust the balance between the two countries.

Many American economic figures have recalled one of the bitterest economic phases in American history, a period of the so-called “Great Depression” that the United States suffered for several years, beginning in 1929 with the collapse of the US stock market in the fall of 1929, not only in the United States, but also many countries in the world suffered dearly as well.

The world trade has fallen by half and two-thirds, and average per capita income, tax revenues, prices and profits have fallen.

The most affected by the crisis were the cities, especially the heavy industries, and construction in almost all countries stopped, and farmers were affected by falling crop prices by about 60%.

One of the main causes of the crisis was the same as that of US President Trump is heading today.

In 1930, US Senator Reed Smoot and Congressman Willis Hawley enacted a law known as the Smoot-Hawley Tariff Act, which imposed high fees on most US imports.

High tariffs were levied on more than 20,000 items imported by the United States from a number of countries, forcing these countries to respond and reciprocity and imposed high tariffs on imported US products, causing an economic disaster suffered by the United States for the upcoming decade at that time.

However, the fact that the Sino-US conflict is not a trade imbalance between the two countries but beyond political and strategic issues and issues related to even US national security and conflict of influence in the world.

Some think that most of the concerns of the United States and its decision-making centers are countries like Russia and Iran, but the reality is the opposite.

Certainly, the US consider Iran as an important issue for the United States, but the real challenge is China and the economic and geopolitical divide.

Whatever the American concern about Russia, it doesn’t represent any threat, neither economic nor military, as is the case with Iran.

The United States’ problem with Iran is twofold: to protect Israel; and second, to maintain a degree of escalation in the Gulf region by using Iran as a panacea for the continued exploitation and physical depletion of the Gulf states under the pretext of the Iranian threat and the Persian threat.

For example, Russia would pose a threat to the United States, a country with a population of only 145 million, living in a vast geographical area and, of course, without elements that would make it a challenge to the United States.

The same applies to Iran.

China, the ancient empires in the heart of Asia with its huge population of 1.3 billion, while the United States has a population of three hundred million and a few hundred thousand.

China’s size and its growing economy is the biggest challenge the US is facing.

China, which began its actual rise in the late seventies and early eighties of the last century.

China’s currency reserves stood at about 1/6 of the US cash reserves at the beginning of the 1980s.

Today, the Chinese currency reserves are about 30 times the US cash reserves.

China’s gross domestic product (GDP) in the 1980s reached about 1/10 of the US gross domestic product (GDP), and today China’s domestic reached almost head to head with US GDP, let alone the dollar’s value in China surpassing its value in the United States.

Those looking at the figures of countries’ economies in the 1980s, for example, find that the subsidies of any EU country such as the Netherlands were bigger and stronger than the Chinese economy at the time.

Today, China’s economic growth figures are horrifying in comparison to the world, as well as the rapid pace of China’s development as a nation, even though it is a Communist state.

This development is not only economic, but the development of China in various fields and levels.

China is a unique model among nations that have developed at a time of record throughout the history of mankind. It would be extremely stupid to treat a world as a new economic player that has just entered the commercial market and the global economy.

The conflict between China and the United States, which according to current figures will in no way be in the interest of the United States, which is now in an embarrassing situation, is now under the control of a person like Trump.

It’s no exaggeration to say that the conflict between China and the United States will be the real conflict that will break the bones, and it will probably be the bones of the United States, which today has to take care of its Cold War days with the Soviet Union’s proud pregnancy.

China is not Russia, not economic, not military, and not even in human population.

Today, the United States is in the face of one billion three hundred million Chinese who have the ability to erase the 50 stars and the red and white strips of existence.