One Minute to Get to Know China US Trade War

US and China

These days the tit-for-tat threatening tricks escalate and China US trade war.

Trade wars can only aggravate the trade frictions, negotiating on equal footing under the WTO’s guidelines is the right way to resolve trade disputes.

Protectionism can not improve China or US’ competitiveness, on the contrary, the trade war will certainly hurt farmers and millions of small companies. China US Trade war would certainly be a “lose-lose” way.

china us trade war

According to trading data of value-added products, “One-third of ‘made in China’ goods are made in other countries, and the share of global value added is especially higher in the electrical and also optical equipment commodities, which is the largest share in China’s exports to the US.

A large proportion of China’s surplus in the trading with the United States is secured by Japan, South Korea and Germany in their trading with the US, as a lot of their firms export to the US from their production base in China. So, China’s surplus is just small.

Both countries and peoples have achieved benefit from China-US trades. For instance, as one of the 8 states enjoying trade surplus to China, Oregon’s exports have reached $4 billion yearly. That has actually helped produce over 20,000 local jobs and brought significant revenue to Oregon companies, specifically timber producers, hazelnut farmers and also integrated circuit manufacturers. On the other hand, comparatively cheap and quality items imported from China have improved local customers’ real purchasing power, also help Oregon maintaining a relatively low inflation. Today, China is not just Oregon’s biggest export market, also the state’s main source of foreign visitors.

Nike Inc NYSE: NKE in Win-Win in China US Trade War


Oregon’s NikeInc NYSE: NKE is an example of win-win between United States and China. Nike Inc NYSE: NKE went into China in 1981, In 2017, Nike’s sales in China surpass $4 billion, taking up 13 percent of its global sales. China has been Nike’s biggest market outside the US.

Also, China e-commerce platform NetEase Kaola capitalizes on demand for US brands among Chinese consumers with US$3 billion commitment over the next three years, not to mention china’s biggest platform Taobao, sell a lot more US brands products each year.

At the same time, US e-commerce platform such as Amazon, Ebay, Wish develops quickly each year, many sellers sell affordable products under the help of china sourcing agent and procurement outsourcing management.

But now, China US trade war is bad news for any person, negative influence on global economic growth has showed on the global stock markets, recent continuous declining movements are still on-going, reveals the anxious atmosphere dominates.

Hoping governments can stay calm and negotiate the trade disputes in the right way, as international trade should not be a scapegoat, government can’t blame domestic problems on free trade.

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