May 13, 2019, 4:24 PM
News Code: 83313113
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Trump’s 'Trade war'; Achilles Heel of world economy

Tehran, May 13, IRNA – President Donald Trump now by launching trade war with China and even the United States' allies has set foot in a way that analysts believe is a threat to the world economy.

This comes while Trump announced in 2016 presidential campaign the revival of 'economic nationalism' as one of his approaches and goals.

In recent years, China-US relations have been tense in political and military issues, and now it has become increasingly intense in the commercial and economic sectors.

These days, the intensity of the economic war between the two countries has increased, and the president of the United States is beating the drum for this confrontation. On Friday (May 10) which was one day after the Chinese negotiator arrived in Washington to hold the eleventh round of trade talks with a view to reach an understanding, President Trump announced in Tweets that the 10 percent tariff on the $ 200 billion imported goods from China is increasing to 25 percent.

“The US First' is the doctrine and purpose of the business-oriented president of the US, who since his presence in the White House, and with this doctrine, has come up with various confrontations, especially commercial ones, with his allies.

He has repeatedly said that in order to support the business and economy of the country, the loss of about $800 billion in trade balance of last years with other countries must stop, of which only $500 billion is related to China.

The first Trade confrontation between the two countries over the past year has been triggered by Trump's action on imposing a 10-25 percent tariff on $ 250 billion Chinese goods with a view to reduce the trade surplus of $ 375 billion.

In response, Beijing imposed to a tariff of 5 to 10 percent and in some cases 25 to 40 percent on $110 billion on the US commodities.

This led Trump to announce that new tariff on goods on another $275 billion will be imposed in the event of an intensified US-China trade war.

The main criticism of the president of the United States about China is 'theft of intellectual property rights and commercial discrimination.'

He repeatedly said that this has caused American companies to suffer from the entry of cheap Chinese goods subsidized by Beijing.

Given these Concerns about the continuing trade war between the two sides, Beijing and Washington were expected to agree on the eleventh round of talks, but now with Trump’s measure, the experts warning that there was a danger of expanding a trade war and targeting the economic order in the world is coming true.

The president of the United States, despite continuing negotiations between the two sides, had repeatedly stated that he will not accelerate reaching a deal with Beijing, because a treaty should be made that China would not be able to break.

Washington has announced in a trade talks with Beijing that China must commit itself in writing and formally that it will not abandon the measures envisaged in the agreement; but the look of China's economic experts is that the loss of Washington's written and imposed commitments exceeds the increase Tariffs and Beijing will not be 'economic suicide'.

Washington has announced in a trade talks with Beijing that China must commit itself in writing and formally that it will not abandon the measures envisaged in the agreement.

Trump is concerned about Beijing's non-compliance with regard to the trade pact, while has shown and violated many international laws, but now he expresses his concern over other countries' policies.

** Warnings of consequences of trade war

Close contacts in the global economy have caused the slightest pressure on the sector to have a damaging effect on the investment and economic relations of the countries, so that the damage will be domino-effect.

As a result, the intensification of US trade war with China, is dragged into in the stock markets and the world oil also leads to a decrease in the value of shares in many markets and the decline in oil prices and the price of gold on the global markets.

Concerns about the escalation of China's trade war with Tramp's action not only sparked Beijing's reaction, but also the Allies and United States in the European Union, pointing out their criticisms of the White House and warned of its consequences.

Concerns about the escalation of the US’ trade war with China not only sparked Beijing's reaction, but also the Allies and United States in the European Union, have pointed out their criticisms of the White House and warned of its consequences.

The first reaction to this problem has begun by the Chinese authorities who have threatened, there is nothing but mutual confrontation in the US trade war.

A spokesman for the Chinese Ministry of Commerce stated that the war does not have a winner and does not match the interests of any country in the world, and the two countries must reach a win-win agreement based on mutual respect and equality.

Chinese deputy prime minister, who traveled to Washington for the 11th round of business talks, did not consider the increase in tariffs as a way to solve the problem, and emphasized that the risk of this economic confusion would spill over into the world economy.

Christen Lagarde, chairman of the International Monetary Fund, warned Trump a few days before imposing tariff repossessions on Chinese goods that the new tensions between Washington and Beijing are a major threat to the global economy.

'The tensions that have been increasing since last year threaten the multilateral trading system,' Antonio Guterres, UN Secretary-General, told the WTO General Council in Paris last Friday.

'Since the end of the Second World War, nations have resorted to a system of multilateral institutions and agreements on the promotion of peace and social and economic progress. Trade is at the heart of international relations ...'

Despite the fact that the president of the United States has made his attempt to maximize pressure on China by imposing tariffs on its goods, China's countermeasures against these trade policies have attracted Chinese experts.

China's other approach to this confrontation is to use more of the 'yuan' currency in trade exchanges and the gradual abandonment of the dollar.

In the eyes of world economic analysts, the economic policies of the White House government have led countries to trade in national currencies or currencies other than the dollar in those years, and this has led to a decline in the value of the dollar, so many countries around the world are looking to use other currencies are for trading. Given the fact that the yuan is welcomed in the world, the move will be a winner for China in economic confrontation with the United States.

By: Latif Nekouei

Translated by: Hamed Shahbazi