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What are the views on the US - China trade war? Show more Show less

Donald Trump's protectionist economic policies led to the introduction of tariffs on $250 billion of imports from China. President Xi Jinping responded with tariffs of his own, affecting some $110 billion worth of US-made products. As the two global economic behemoths enter a trade war, what are the implications for both economies and the rest of the world?

The trade war is good for the US Show more Show less

The US has the upper hand; this is a war it is likely to win
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US Businesses Will Thrive

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The Argument

This means things such as ending practices such as industrial espionage. Chinese businesses involved in partnerships with US ones have done things such as taking new inventions and innovations and distributing them to Chinese businesses, so that they can create better products without having to sink time and money into research. This seriously impedes the ability of US businesses to innovate and be profitable, costing jobs and future growth. US industries such as textiles will also benefit. Industries such as this have faced significant decline due to Chinese competition. 100,000s of jobs have been lost, so stopping this will be very beneficial. The increased prices on raw materials such as steel will not harm American industries. Shortages and adversity will drive innovation creative solutions to the problem, as happens in other parts of the economy. Once they are confronted with the problem businesses will be forced to come up with new and creative ways to solve the problem. Previously they were being protected and had no incentive to do so. Businesses will have to create better more efficient solutions, improving the quality of the business. Businesses which cannot survive without artificially low prices for steel will face extreme disruption when China stops dumping steel and the prices rise, so it is better they face this problem earlier.

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This page was last edited on Tuesday, 21 Aug 2018 at 20:37 UTC