Undoubtedly, there is a significant trade conflict arising between the US and China, which is turning into new cold war. The impact is so inevitable that presses of Beijing and Washington are developing their alliances to influence the world in their terms. As a result, this cold trade war is creating economic disruptions on a global level.
Some intellectuals and analysts are bringing up past few memories in which nations were experiencing the same crisis during the outbreak of World War I. At that time, US was confronted by the Soviet Union for bringing up better ideological and geopolitical aspiration to overcome this crisis.
But now, China is stepping up-front as a resurgent competitor. Its determined president, Xi Jinping, has wholly marked up his objective to make China the world’s leading supreme national power.
Becoming a Geopolitical game; Rise of a Cold War!
The relationship between the US and China are based on different aspects and terms, and not wholly based on common objectives. This might make China think of retaliating for better outcomes, taking its economic issues as the predominant lead. For this purpose, a constructive idea would be to utilize its influencing power with North Korea for weakening US efforts, without affecting US sanctions.
China can also tackle the US in the South China Sea, which might be a dangerous or risky strategic event in East Asia. Since Beijing has more opportunities to assert seaways south of its coast, so this strategy could encourage China to turn out to be more confrontational. Other options would be to strengthen the relations with Russia and segregate Taiwan.
Nationalism Trumps shared interests
The trade war between US and China is not escalating as the most worrying developments. But it also indicates more instability and fewer vibrant periods in the global economy. It is resulting in an attractive opportunity for nationalist politics over mutual economic interests. As a result, the global economy might face less integration and more degradation.
The objective of US President, Donald Trump, is directed to slash out supply chains globally. And bring up relevant approaches to drive mercantilist towards economic development. Due to China’s past attitude, the global digital assets received the fire. Also, rapacious approaches were made to foreign investments and new tariffs. According to Mr. Trump, it will reach a surprising level of support in US business circles.
Impact on Global Economic
China can make attempts to maximize the level of altercation through its extensive economic control outside of trade. To minimize the acquirements of American Treasuries or to trade some of its trillion dollars funds from its possession, China can make strong retaliation.
All the assumptions, calculations, and opportunities to overcome these conflicts. It can be beneficial at some stage, but can’t remain constant.
However, it can reduce the apocalyptic situations from rising beyond the expectations of the global nation. But it can make Yuan stronger and the prices of goods more expensive for foreign countries. Overall, this cold war between the US and China has turned out to be the most difficult global conflict.