World’s Technology, Trade and Security are at risk in US-China dispute.
US-China is the biggest economies on the world. They both spend more on military and advance technology than anybody else in entire world. Risks are posed by the continuing sharp deterioration in US-China ties to the rest of the world and both countries. In the latest escalation, a US consulate in Chengdu in southwestern China shuttered Monday, arranged by China to close in retaliation shutting down its consulate in Houston a week.
Together with the US presidential campaign all bets are that connections with China will only get worse. Both nations already have endured significant losses at a tariff war which erupted in 2018 over Beijing’s tech ambitions and exchange surplus. If talks on ending the dispute neglect, the world could face downward pressure on trade at a time when the global economy is reeling in the pandemic.
The United States is the largest export market of China, despite President Donald Trump imposed punitive tariffs on Chinese goods. And now China is the No. 3 market for American exporters, in addition to a huge market for goods and services made in China by US companies ranging from General Motors Co. to Burger King.
Chinese purchases of American farm products, semiconductors and other products declined 11.4percent annually but still exceeded dollar 100 billion.
If this trade issue is not resolved by the both, then it will be a blow to their own exporters, but also to other Asian economies that supply components and raw materials to the factories of China.
US and Chinese producers of tech and their economies are interwoven. Hewlett-Packard, Dell, apple and many others rely upon factories to assemble most of consumer electronic equipment computers and their Smartphone’s.
Also read | US again blacklisted 11 more Chinese company
The United States often is the market for the highest-value-added merchandise of China. Many European and Asian markets won’t buy such high-value goods, although Beijing has been urging exporters to find different markets.
Military tensions have largely concentrated a crucial waterway that’s the subject of overlapping claims by several smaller Asian nations and China, upon the South China Sea.
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