Trade war between US-China is getting now an ugly turn for China since its economy is going down. The recent report shows that trump decided to add more tariffs on Chinese goods worth more than $300 billion from the first week of September. This new tariff decision from president trump is going to make the Chinese economy more vulnerable since the country’ s majority of sectors falling apart. The recent reports show that the Chinese economy is growing at the slowest pace since 1992. The industrial production has also recorded the slowest growth rate in the last 17 years, which shows a negative impact on Asian’s largest nation’s output.
The Chinese government is trying to make things right again because of that they have decided to waive off a massive amount of loans. The government is bailing out a large number of businesses and also reduced interest rates nationwide. These things are making Chinese investors more worried, and that fear can be used by Trump administration to secure a good trade deal. Some experts think this vulnerability of China could mean there is a chance of getting a trade deal from them for trump administration. At this point, the US has leverage of using its dominance, and that’s why some think this could be a great time to strike trade deals.
The Chinese economy is already at its lowest point, and they can’t sustain that many losses for a longer time. However, even if that’s true, China following the USA in terms of putting taxes. Recently, the Chinese government decided to put a hefty amount of extra taxes on the US-made goods worth of $75 billion. Now such type of decisions makes everyone suspicious of what China wants to achieve during such hard times. Even if economists are saying the Chinese economy is in danger; however, the Chinese government’s actions are not saying the same thing.