CHINA –US TRADE WAR AND ITS
IMPACT ON GLOBAL ECONOMY
VIJAYA DISSANAYAKE
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Part 2 – Regional Analysis – Focus on GCC
What is a Trade War?
 A trade war happens when one country retaliates against
another by raising import tariffs or placing other restrictions
on the other country's imports.
 Trade wars can commence if one country perceives that a
competitor nation has unfair trading practices. Domestic trade
unions or industry lobbyists can pressure politicians to make
imported goods less attractive to consumers, pushing
international policy toward a trade war. Also, trade wars are
often a result of a misunderstanding of the widespread
benefits of free trade.
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SLFS Part II – US – China Trade War
Reasons for Trade War
Power
Economy
Politics
Competition
Money
Market
Control
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SLFS Part II – US – China Trade War
Why President Trump did this to China?
Keep manufacturing jobs in the US
Reduce US-China trade deficit
Keep US a dominant empire
Get US out of debt
To curb China’s rise as a global economic power
Bullying the bully
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US – China Trade Balance, in $ Billions
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MADE IN CHINA 2025
 MIC 2025 is an initiative which strives to secure China’s position a global
powerhouse in high-tech industries.
 The aim is to reduce China’s reliance on foreign technology imports and
invest heavily in its own innovations in order to create Chinese companies
that can compete both domestically and globally.
 China sees MIC 2025 as a chance to fully integrate into the global
manufacturing chain and more effectively cooperate with industrialized
economies.
 Chinese officials have claimed that leading economies with high-tech
industries such as the EU, Germany and the United States have
expressed their hostility to the initiative due to the fact that it would move
China from a low-cost manufacturer to a direct added-value competitor.
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Part 5 – Recommendations
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TRUMP’S TRADE WAR
Page  8
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Page  9
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Timeline of the US-China trade war
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EFFECTS OF TRADE WAR
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Page  15
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Do You Have
Any Questions?
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