The united states of America have always been dominant in every sector if business but last one decade was not good for it. Since China’s emergence in manufacturing, the retail industry has created lots of problems for USA. Now since Trump has decided to put extra tariffs on Chinese goods and service, many people think China might suffer because of it. However, before this decision of Trump China was not performing well because since April it’s been observed that China’s manufacturing, real estate, investment sectors have gone down by high margin. The retail businesses in China are in a difficult situation because of this trade war with the USA.
The export sector of China has suffered the most since US consumers are top buyers of Chinese goods and services however because of Trump’s hefty amount of taxes now they are not able to sell their products at a high margin. China currently needs a sustainable growth of economy, but it’s not getting it because of bad geopolitical relationship with USA. Donald Trump has already fought China on issues of intellectual property theft, and according to him, Chinese companies are just copying American. Now to counter-attack that move of Trump, China has also decided to levy taxes on the US made goods, but that’s not going to save its sinking economy.
Even though China is the second largest economy in the world, it is still trying to beat US in every economic aspect. The fixed asset investment in China has reduced significantly because of high inflation, and that’s the reason government now have to lend money to local Chinese people in business. Export sector mostly sells retail products, including electric items, but because of this dispute, many of them are on the verge of bankruptcy. The situation between China-US doesn’t seem to be resolved that much easier, and even if it did, then China will have to agree to all terms and conditions of USA.