Trump policies on china essay

However, this is the most consistent policy coming from the too often criticised Whitehouse. The policies Trump put in place are regarding the fact that China is often seen as a trade cheat. All these policies were put in place even when warnings from economic experts say that the whole idea will eventually hurt the economy of the country only that the effect has not yet been felt or it is just not having an impact. It seems that the U. S has only survived from the trade stalemate and flourished more than ever in the past two years. The U. S financial market remains to be the highest-ranking economy in the world and the largest as well having a GDP of $19. trillion in 2017 which is larger than China's GDP of $12.

trillion by a whopping 60%. Malloy, 234). A smaller population like the U. S population have to share the resources which are just about enough, and the tax burden is less than the other economies, and because of this, the purchasing power of the U. S citizens is higher. China has a large population that is struggling to share the little available resources and therefore it makes it harder for people to have jobs and the spending capacity also is low. On the contrary, the general tariffs and policies could result in a lesser demand for goods from China and therefore the prices are likely to fall therefore hurting China's economy. S government. China, however, imposed a similar tariff of 25% on all goods coming from America. Kroenig, 121). The amount is almost identical to the one imposed on Chinese products in America.

This has made the demand for American product go down in China. S. free trade generally improves the society. This is because the production of goods is limited to those who have perfected the art of making a particular product — then giving it in exchange for money or other products. This brings about a social relationship while transacting. The general idea of imposing tariffs will affect many economies and not just the economies of the three places that are America, Europe and China. S when trading with China outweigh the benefits. China imports goods that cost less and the American citizens, with their high purchasing power, get to buy more for less. America also has a high deficit in their current accounts. This is because it borrows more than it lends especially from China.

Therefore, without the contribution of China to the American economy, the treasury would be forced to foot higher interest rates which would affect the cost of paying off the governments debts and trickles down to the homeowner who will have to foot higher mortgage bills. It is important to have jobs catering for the less fortunate those who have never been able to attend school but have the capacity for learning to earn a living. China is a major recipient of a majority of direct foreign investments. However, the country has not been successful in turning all the capital it has into a current account deficit that would increase domestic investment and consumption. The establishment of an untenable international investment position of having an accumulated $2 trillion in net foreign assets it still sticks to investment income deficit for more than a decade.

Irwin, 102-200). This will be beneficial to the economy of China in the long run. Therefore, this whole debate can be concluded by saying that Trump's policies on trade are a triumph for the American people. Works Cited: Cha, Taesuh. The return of Jacksonianism: The international implications of the Trump Phenomenon. The Washington Quarterly 39. Malloy, Michael P. Economic Sanctions and US Trade. Little, Brown. Patrick, Stewart M. Trump and World Order: The Return of Self-Help.