Everything about the trade tensions between the economic super power and the emerging economic power have been creating a buzz and making headlines recently. Knowing China as an economic aggressor that blames USA which initiated trade tariffs on Chinese imports worth $200 billion dollars. China retaliated by slapping counter trade tariffs on USA imports to China.
As we take a look at the economic growth rate of the USA, which emerged as the economic boss of the world, once can trace back its history since then Industrialisation during 18th and 19th centuries as compared to China’s economic growth rate from the 1980’s. But now, China is attempting, albeit to go neck to neck with USA, to grow up the domination and its wish to influence global politics.
But in fact, the trade tensions will create a ripple effect and result in implications on the world trade too. Recently, after China slapped traffis followed by South Korea, Mexico and Canada reacted with tariffs seeing an opportunity to counter American hegemony in world affairs.
China, since its ambitious belt and road initiative was declared, brought the American attention to counter the its growing ambitions in the Asian Pacific region very eminently. Indeed, this project connects inter continental networks is a worrisome factor to America in the series of losing grip in the world affairs, because it’s always sought to remain the sole global power.
Trade war between these countries may cause global Economic war, which would hurt developing countries such as India, Brazil, and some other third world nations. Though India does not intervene in such war escalation but may fall immune to it and hurt its economic growth in the short run, as it is already bearing problems like rupee depreciation and current account deficit. But our soft power diplomacy worked often and it is the only solution left to go ahead by preventing trade tensions among the big powers .
In the recently concluded 10th BRICS summit, our Prime Minister has categorically cleared that our outreach to African nations is an important requirement as our rival China is immensely increasing its influence to grow to counter Indian efforts. China always asserts its domination over India because it sees India as a threat to its growing ambitions and to the regional stability in the Asian continent.
Hence I conclude the trade bickering and mounting tension may have cascading implications on the global economy. International institutions like world bank, IMF, WTO shall show the way for the countries to have a healthy trade in pursuance of free, fair of capital and investment in the trade and service sectors.