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Author Topic: What is the cause of trade war between USA and China?  (Read 132 times)
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October 08, 2018, 07:50:49 AM

I don't know if this is the right place to ask this questions, but since it has to do with economy, I feel i should ask it here.

For some months now, I keep hearing about the trade war between United State and China,

I have tried to research on what is the actually cause of this war but I can't seem to understand what is the actually cause of the war.

My question is this....

1. What is the cause of the trade war?

2. What are the things the both stands to lose because of the war?

3. Does it have any impact on the crypto market?

I want economist in the forum to help me answer these questions.  

i'm not an economist, but i'll give it a try. Wink

1. trade wars stem from protectionism. the trump administration imposed sweeping tariffs on chinese manufactured goods---the underlying idea being that by making chinese products more expensive for american consumers, they'll buy elsewhere, perhaps domestically. china responded in-kind. trade wars often evolve as tit-for-tats like this that can snowball into larger conflicts.

2. economic stability; prosperity. trade wars have historically preceded economic and military crises.

3. it depends on the magnitude of economic damage. if extreme protectionism ushers in a major recession or depression, that could have drastic effects on world markets. as high risk speculative assets, i believe the crypto market could decline considerably in such a situation.
This is the main point you have picked here. Chinese good have been imposed tariff on and this leaves no or very less profit for the Chinese companies who are exporting the goods thereby leaving the Chinese economy in deficit which is a matter of concern for China and they responded with similar actions.

This is the reason behind the war between both the countries but this is not intense for China knows that it has to depend for its exports on the US while US know if China stopped using dollar, they will be bankrupt so these are very normal things.
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October 08, 2018, 09:52:35 AM

I think that in the case of serious actions by America, she will not be the winner, because China is now a very strong country!
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