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Essay / The influence of US-China trade environment on Bangladesh economy and trade
To understand the current scenario of US-China trade or trade environment United, we must first do a brief analysis of the distinct business models of the United States and China. . Since the beginning of the era, China has been a country full of resources and developments such as agriculture, science, banking system, strong monetary system, resilient military, etc. Their lands have been repeatedly attacked by joint foreign attacks due to the lure of lucrative resources. China's economic system has been repeatedly undermined by several foreign trade exchanges, wars and discriminatory treaties. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayDespite unresolved situations until the 1950s, China's economy has been booming in recent days and its so-called socialist economic system has become a model for many in developed countries like Bangladesh. The country is developing its technology so quickly that other countries consider it a challenge to compete with China. China's fastest growing technology sector is product replicas. It manufactures replicas of almost all of the world's famous brands at a very low price. On the other hand, China is an export-oriented country, especially the export of steel. It also exports raw or primary chips for high-tech products. The top ten products exported by China are electrical machinery or equipment, machinery including computers, furniture, clothing, knitwear, optical devices, plastic articles, vehicles, iron and steel articles and the last one is toys or games. The contribution of electrical machines alone represents almost 26.4% of total export earnings (Workman, 2018). Likewise, China is increasing its foreign direct investment in developing and developing countries. Additionally, some developing countries are heavily indebted to China due to various types of loans relating to construction and other development projects. For example, Pakistan is seeking a bailout from the IMF. But the United States dominates the IMF's refusal to grant a bailout to Pakistan because China would benefit from the bailout. China's foreign exchange reserves now stand at $3.1 trillion, which is gigantic compared to the United States, which has reserves of $120.493 billion so far (Trading Economics, ND). In 2009, China became the third largest market for U.S. exports. The main products exported by the United States to China are aerospace products and parts, oilseeds and grains, motor vehicles, semiconductors and other electronic components, oil and gas, scraps and scrapings, navigation, measuring, medical and control instruments. , -basic chemicals, -synthetic rubber resin, -artificial and synthetic fibers, -pharmaceuticals and medicines. Until 2009, the United States was the main winner in US-China trade relations, but after 2009, China seeks to restore its trade balance. But now the trade war has not taken place solely for economic reasons. There are basically two reasons behind the trade war: 1. Economic reason2. Political reason. Overall, we can say that the reason ispolitical and economic. Everyone knows that China's economy is booming and has already become the most powerful nation-state in Asia. Economists have predicted that by 2050, China's economy will surpass the U.S. economy. It is common on the international scene that economic supremacy leads to greater political domination. The possibility of China replacing the US position cannot therefore be ignored. Currently, China is trying to increase its dominance over South Asian countries and other parts of the world through the Belt and Road Initiative, which is frequently criticized by the United States. . Fearing losing his dominance over the entire world, US President Donald Trump took the controversial step of “making America great again”. During Trump's election campaign, he repeatedly claimed that China was cheating America on trade. The Chinese government has discovered two distinct problems with China that must be resolved immediately. These are as follows-1. China's theft of intellectual property rights must be stopped and 2. Reduce the growing trade deficit with China. But the US-China trade relationship is not as simple as various security and trade issues that cannot be linked. Currently, the trade balance is in favor of China, which stands at $375 billion as of December 2017. But this huge imbalance does not happen overnight. There are several reasons-1. As China has cheap labor costs, American manufacturers have been relocating to China to take advantage of cheaper labor costs. Then the finished products are imported to the United States and are branded "Made in China", and then they are sold at lower prices than those made in America. On the other hand, “Made in USA” products are no longer competitive on international markets. because they have higher manufacturing costs, except for high-tech machines. 2. As of January 2018, the US debt to China was $1.17 trillion. China directly helped U.S. bank interest rates stay low by directly purchasing U.S. bonds. The question now arises whether it is possible for the United States to reduce its trade deficit and for China? Recently, a wind of change has been felt across the world. Work-oriented countries are growing steadily. China is the country that has benefited the most from recent change due to its trade policy and social values. China's economic growth has certain attributes: its rapid industrialization leads to the production of labor-intensive goods at lower costs and the other is that it exports them around the world. Thus, the trade balance between the United States and China could be achieved partly through negotiations, not in its own right. But Trump's trade war warning is not a solution, rather it will be devastating. Sanctions and tariffs on Chinese products will not be a good policy as China's trade does not depend on the United States, since the United States only accounts for 18.4% of Chinese exports according to data from 2016. Imposing tariffs on Chinese goods would lead to higher prices for U.S. consumers and less demand for U.S. goods made in China. This could lead to a sharp decline in U.S. businesses, resulting in job losses for U.S. and Chinese companies. Donald Trump, as a nationalist leader, cannot be blamed for having?