China-US Trade War and Impact on Global Community

The economic conflict between the United States and China has escalated to its maximum this year with new accusations and import tariff threats. The concept of fair trade implies transparent policy in international trading activities, while free trade is an agreement between countries on an unlimited movement of goods and services between them. Thus, the American government blames China for giving an unfair advantage to its domestic producers. The latter provides subsidies and manipulates exchange rates to reduce prices. Now, the trade war has begun to impose a detrimental impact on the technological sector of both economies, as well as the rest of the world. In this essay, the trade war issue, discussed in an article, will be investigated with subsequent provision of personal opinion and overall impact on the worldwide community.

The export restrictions, previously introduced by the U.S., received a counter-attack. The article, “China-US trade war: Beijing escalates tit-for-tat with Washington” by BBC News, discusses the new legislation initiated by the Chinese government, limiting the export of “military technologies” (China-US trade war: Beijing escalates tit-for-tat with Washington, 2020, para. 2). The action is supposed to be a result of President Trump’s allegation regarding TikTok’s illegal personal information leaks. Furthermore, the future of the “tech war” depends on Joe Biden, the President-elect (BBC News, Tech cold war section, 2020, para. 2). The recent law divides technologies into different types according to their use and purpose. The significance of the regulation is justified by the safety of the “national security” on the part of China (China-US trade war: Beijing escalates tit-for-tat with Washington, 2020, para. 2). The law stipulates high costs and penalties for domestic producers together with the international community across the globe. Moreover, the regulation had its effect on the rare earth minerals industry as the new export constraints will increase prices. Therefore, the trade war between the two leading economies led to retaliatory actions, restricting export activities.

The friction has both detrimental and beneficial impacts on other countries. Generally, the issue caused uncertainties and instability on the technology stock market, which have resulted in a fall of foreign direct investments. Consequently, developing countries akin to India will face a reduction in funds coming from international companies. Increased interest and inflation rates in the U.S. will attract them, thus, directing their activities to the American market. In addition, economies assembling their devices in China, offering cheap labor costs, may encounter restrictions. However, due to the reduced trade of military appliances from China to the U.S., other exporters may benefit by filling the rising gap in the American import figures. Companies may consider another country with low manufacturing costs such as Vietnam or Malaysia as a place to shift their production to. Thus, technical firms will not have to deal with high import tariffs in the U.S. and particular legal requirements in China. The importance of the trade war, which now impacts technological products, concerns the worldwide community with its economic and political consequences. Thereby, the two opposing sides have a direct influence on the further growth of third-party countries.

Overall, the source describes the issue by providing supportive details and informative quotes with an opening introduction for those unaware of the situation. The author states the major event, which is the new regulation in China. Moreover, the article is supplied with additional speculations on why the matter arose. An opinion from a reputable source, Mr. Capri, has been offered so that a reader may perceive the article as credible and trustworthy. Then, the writer elaborates on the law by delivering particular features and effects of it. Thus, the piece demonstrated that comprehensive research has been conducted regarding Chinese legislation and its impact. It can be observed from the numbers given for the violation of the law. The author develops the point by mentioning the negative influence on China’s rare earth minerals industry. Hence, the issue is examined from the perspectives of both sides. Thereupon, the news article informs about the trade war case, contributing to readers’ understanding of the problem.

In my opinion, the ongoing retaliation is unreasonable and senseless. The imposition of restrictions on military devices and other products is harmful to the American economy. Political aims are hidden under aggressive actions on account of the U.S. President. Donald Trump is trying to raise popularity among his voters and relevance among party donors by continuing a fight with obviously adverse effects on the national economy. On the other hand, the Chinese government is in absolute consciousness of its measures since the war will only benefit the country in the long run. The justification for the protection of Chinese security is insufficient enough to damage domestic producers and pose barriers to trading activities. Thereupon, both sides aim at their egoistically greedy goals to gain more power and funds.

In conclusion, it can be noted that the issue discussed in the article regarding free and fair trade is insightful and comprehensive for readers regardless of knowledge of the problem. The recent legislative moves taken by the Chinese government concerning technological products are a hostile reaction to the U.S.’s prior restrictions. Accordingly, there will be losers and winners, as a result, some economies will benefit and others will be disadvantaged by the situation. However, in my view, selfish political objectives are concealed under the superficial goals and absurd rationale of the trade war.


BBC News. (2020). China-US trade war: Beijing escalates tit-for-tat with Washington. Web.

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DemoEssays. (2022) 'China-US Trade War and Impact on Global Community'. 21 February.


DemoEssays. 2022. "China-US Trade War and Impact on Global Community." February 21, 2022.

1. DemoEssays. "China-US Trade War and Impact on Global Community." February 21, 2022.


DemoEssays. "China-US Trade War and Impact on Global Community." February 21, 2022.