Trade disputes between China and the United States

Q（1）:On May 10, 2019, the United States raised tariffs on $200 billion of Chinese goods
imported to the United States from 10% to 25%.What do you think of it?
A（1）：The trade war has lasted for half a year. Trump has repeatedly declared that the trade
war is simple and that the United States will win. He believes that as long as tariffs are
increased by 50 billion US dollars, China will certainly negotiate; if 50 billion US dollars is not
enough, it will increase to 200 billion US dollars; if not, it will continue to increase. But every time
the U.S. lists Chinese goods, China immediately lists increases in tariffs on U.S. goods. So
there is no winner in the trade war, China will face losses, but the United States will also suffer
losses.

Q(2):Why did the United States launch a trade war against China?
A(2):The Renminbi poses a threat to the dollar. For a long time, the United States and the
developed capitalist countries in the West have used US dollars to control oil prices, but China
has begun to use RMB to settle oil. Now a large number of oil has begun to settle in RMB, and
China has also begun to establish a preliminary prototype of gold standard currency. At the
same time, the unemployment rate in American manufacturing industry has doubled, and the
employment rate in American manufacturing industry has been declining for 65 consecutive
years, from 32% in 1953 to 8.5% in 2017. Before Trump came to power in 2016, there were two
typical slogans in his campaign. One was the so-called American Priority Principle. Another
sentence is to bring back manufacturing. Through trade war, the development of domestic
industrial system and the realization of the principle of the supremacy of American interests, the
United States hopes that the industrial system will develop again.

Q(3):How will the trade war affect the two countries?

A(3):China may result in lower income and unemployment risk for employees of small and
medium-sized export enterprises. China's export enterprises will face two situations when the
United States imposes high tariffs. 1. In order to maintain the competitive advantage in price,
export enterprises must reduce the cost of production, logistics and sales by a large margin.
There is a risk that the income of employees will decrease, including the employees in the
upstream and downstream of the relevant industrial chain. 2. China's export-oriented
enterprises may reduce production or close down, resulting in the risk of unemployment of
employees.
The trade between the United States and China is very frequent. Tariff imposition will increase
the cost, increase the cost and decrease the profit of each link in the industrial chain and value
chain. Some American enterprises may be affected and face the problems of production
reduction or shutdown.