Beijing Is Ready For a Commerce War with Washington

Foreign Relation, US and China

The Chinese government says that it is ready for a trade war with the US. However, the United States should take the cost of starting a trade war with China into consideration. Many commerce and foreign relations experts have said that the occurrence of such a war would lead to unprecedented effects especially on the side of the US. One of the professors at Boston College who specializes in political science, Robert Ross has said that Beijing has made it crystal clear to the US that if Washington is interested in a trade war, they are prepared for it.

Professor Ross says that the Chinese are ready for the war because they have an extremely robust economy and an extensive market due to the large population. One of the mainstream media house in the country has said that China is more than ready for the looming trade war in case the Trump administration starts one. Beijing will not be soft to the US if the Department of Commerce initiates protectionist policies for international trade. In the case where the trade war happens, there will be a considerable fallout of US citizens and American companies that have their operations in China. The professor added that Washington should consider two factors. One is the fact that the lives of American citizens have in the recent past improved as a result of imported and cheap goods from China which the United States no longer makes.

Secondly, there are a lot of corporations that are making vast sums of money by basing their operations in China and outsourcing the cheap and readily available Chine labor. Major tech companies such as Apple, Buick, and HP have multi-million dollar operations in China which bring billions of revenue to the US Treasury every year. Ross warned that Washington should be extra-careful not to consider the trade war a one-way street. On Tuesday, reports from the White House indicated that the Trump administration intends to impose tariffs on $60 billion worth of goods that come into the American market from China.

The political science professor also indicated that the massive trade deficits that have accumulated to the tune of $276 billion by the end of 2017 are a direct result of failed economic policies and not policy issues. He added that the Chinese economy has a very high rate of saving as compared to the US market economy. Whenever an economy consumes more than it can produce, trade deficits are always expected.

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