HomeBusinessWhat Will Happen If the US and China Resume their Trade Talks?

What Will Happen If the US and China Resume their Trade Talks?

American administrators have never liked anyone else gaining power. Especially the easterners. Perhaps that is why they dislike China as an emerging superpower. But the American capitalists love money. The sound of crisp dollars shuffling in the hands is something of a high. So, when the Chinese industries offered them manufacturing and white labeling at a much cheaper price, they jumped at the opportunity.

But that didn’t stop the US from finding faults with the Chinese. And Trump’s ‘Make America Great Again’ campaign didn’t ease the situation. After China “allegedly” spread novel coronavirus globally, the US and China trade talks are spiraling down with greater speed.

What Has Happened Till Now?

The Trump administration is stepping up their confrontation gradually. In July, they even asked, more like ordered, the Chinese consulate in Houston to close. Why? Because of the fear of economic espionage.

Did you know that the FBI director declared China as the biggest threat to the USA? Even the video creation app TikTok got caught up in the clash between the two countries. After India banned several Chinese applications from the play store, the US decided to follow steps, but for their own needs. Last week, Trump issued an executive order ordering ByteDance to find a US buyer. In another executive order issued on Friday, the TikTok now has 90 days to do that. Who knew such politics was possible for a viral app?

Is the Situation Serious?

Has the USA closed down a foreign mission for the first time? No. But is closing down of a foreign mission a big deal? Definitely. The consulates play a role in the trade talks. As Newton said, every action has an equal and opposite reaction. Why would China stay off the boat then? The US consulate in Chengdu (a Chinese city) was ordered to close.

Well, this is a serious shake in the diplomatic infrastructure of the two countries. The confrontation match is pretty much at the same level. Foreign diplomats have been expelled, diplomatic travel rules were amended, visa restrictions were put up, from both ends. Pretty much tit-for-tat.

But America is now at the top of the leaderboard.

Is This About the Presidential Election in November?

Ummm, yes, and no.

People love to make everything political. And dear Trump is also driving the horse quite powerfully to show the people that he is indeed making America great again. But not everything about the rising tensions between the US and China is political.

With the election campaign in full swing and the COVID-19 situation, Mr. Trump is going full head-on anti-China. The strategists feel that it will resonate with the voters. Maybe it is Trump’s way of telling the people that COVID-19 is China’s fault, not his, despite his poor response to control the pandemic.

But this is not entirely political also. Several hard hitters in the Trump administration have been laying down the path for tough action against the rising superpower for a long time. And the US is content with one adversary superpower. So, maybe Mr. Trump was confused between developing a friendship with the Chinese leader or following the advice of his administrators.

Resumes Talks

All’s well that ends well, isn’t that the saying? So, maybe Mr. Trump is now realising that people’s votes do not lie in petty politics but actual results. Or something else has come up in his mind. But the result is that the USA and China are going to resume their trade talks.

Why is this important? Well, both the countries are in a trade war since 2018. It was already having a serious impact on the world economy before the COVID-19 pandemic crushed it further. In January 2020, both of them decided to ease trade restrictions. But the entire episode I talked about above took place and tensions escalated.

But the good news is that they have decided to resume their trade talks. But what does that mean for the people?

  1. The administrators will question policies that protect companies from such pressures in the future.
  2. The US government will solidify its stance on user data protection.
  3. The deal may remain unchanged after the meeting.

What Does It Mean for Businesses?

If you are a businessman or an entrepreneur planning to become an ex-pat in China, 2021 may be a good year for you. Also, this might be the right time for you to pursue a course to learn Chinese language HSK 1 certification clearance. Who knows you might even want to move to the country? Knowing the local language will definitely put you in the good books in a place that is extremely proud of its language. Think about it.

Must Read