In July 2018, US president Donald Trump announced new tariffs on China-made products entering the United States, slapping taxes on another $200 billion worth of goods. While China has also imposed tariffs on imports from the United States, Chinese citizens have become visibly concerned over the effects of the trade war on China’s economy and their livelihoods. In this article from the influential business and economic WeChat wemedia account Zheng He Island, analyst Ning Nanshan offers some reassurance. He looks at possible effects of the trade war on China’s GDP and explains why both nations will likely exercise restraint. He also explores ways in which China may retaliate. getAbstract recommends this insightful article to anyone interested in global trade and the global economy.
In this summary, you will learn
- What worst-case outcome of the China–US trade some institutions predict,
- Why the worst case is unlikely to happen and
- How China can retaliate against US tariffs.
About the Author
Ning Nanshan is a writer for the Zheng He Island WeChat Wemedia Account and covers news on economics and business.