Learning With: ‘U.S.-China Trade Standoff May Be Initial Skirmish in Broader Economic War’
Before studying the article:
The United States and China have been engaged in a yearlong commerce warfare and, within the final week, it has escalated. On May 13, The Times reported:
The United States and China intensified their commerce dispute on Monday, as Beijing mentioned it will enhance tariffs on almost $60 billion price of American items and the Trump administration detailed plans to tax almost each sneaker, pc, costume and purse that China exports to the United States.
The escalation thrust the world’s two largest economies again into confrontation. While President Trump mentioned on Monday that he would meet with China’s president, Xi Jinping, subsequent month in Japan, the stakes are solely rising because the president continues to taunt and threaten China, inflicting it to retaliate on American companies.
The articles continues:
China’s Finance Ministry introduced Monday that it was elevating tariffs on a variety of American items to 20 % or 25 % from 10 %. The enhance will have an effect on the roughly $60 billion in American imports already being taxed as retaliation for Mr. Trump’s earlier spherical of tariffs, together with beer, wine, swimsuits, shirts and liquefied pure fuel exported to China.
The transfer got here after Mr. Trump elevated tariffs on $200 billion of Chinese items to as a lot as 25 % on Friday, and threatened to maneuver forward with taxing the rest of products that the United States imports from China. The Office of the United States Trade Representative launched an inventory on Monday of the roughly $300 billion price of merchandise that might withstand a 25 % tariff and requested public remark, which can start the formal course of for enacting these duties. The checklist contains nearly each shopper product conceivable, from espresso makers to sneakers to telescopic sights for rifles.
Watch the four-minute video “The Anatomy Of A Trade War” from Newsy. As you watch, reply to the next questions:
• What is a tariff?
• Why would possibly tariffs be thought of a “double-edged sword”?
• What is a commerce warfare?
• How do commerce wars have an effect on residents?
Now, learn the article, “U.S.-China Trade Standoff May Be Initial Skirmish in Broader Economic War,” and reply the next questions:
1. Why is the Trump administration attempting to restrict China’s financial affect within the United States and overseas?
2. How is the administration attempting to restrain China’s ambitions and strategies of affect? Why is that this a “tough process,” in line with the article?
three. David Lampton, a China scholar at Stanford University, says the current commerce warfare is a “skirmish in an ongoing battle.” What does he imply by that assertion?
four. Why is a commerce deal unlikely to alter China’s conduct?
5. How do many in China view the United States? How do they view China? How do these views distinction with the American perspective of the 2 nations?
6. Why has China been proof against the rising phrases of the commerce deal?
7. Since the demise of Mao Zedong in 1976, the prevailing view within the United States was that shut financial engagement with China would produce an more and more democratic nation that will be carefully tied to a global financial order based primarily on Western liberal beliefs. Did this show to be true? Why or why not?
eight. How have Sino-American relations shifted lately? What are the longer term implications of this new relationship?
Finally, inform us extra about what you suppose:
Is a commerce warfare an efficient option to restrain China’s ambitions and strategies of affect?
In “Trump’s Trade War Escalation Will Exact Economic Pain, Adviser Says,” Jeanna Smialek, Jim Tankersley and Mark Landler write about how this battle might have an effect on on a regular basis Americans:
President Trump’s chief financial adviser mentioned on Sunday that American customers would bear some ache from the escalating commerce warfare with China, contradicting Mr. Trump’s declare that his tariffs are a multibillion-dollar, largely one-way fee by China to the American Treasury.
The feedback from Larry Kudlow, the director of the National Economic Council, got here after the 11th spherical of commerce negotiations broke off with no deal, prompting Mr. Trump to boost tariffs on $200 billion price of Chinese merchandise and start a course of to impose levies on almost each product China exports to the United States.
“In truth, each side pays,” Mr. Kudlow mentioned on “Fox News Sunday.” “Both sides will endure on this.”
Mr. Kudlow’s acknowledgment of financial ache, whereas extensively shared by economists, contradicted the president’s view that commerce wars are simple to win and that the burden falls disproportionately on America’s buying and selling companions. Mr. Trump once more asserted on Monday that there was “no cause” that American customers would pay the tariffs.
Both Mr. Kudlow and the president say protracted commerce warfare will finally be within the United States’ monetary curiosity. Mr. Kudlow mentioned that any ache could be well worth the worth if it compelled China to deal with American corporations extra pretty.
“You’ve bought to do what you bought to do,” Mr. Kudlow mentioned. “We have had unfair buying and selling practices all these years and so in my judgment, the financial penalties are so small that the attainable enchancment in commerce and exports and open markets for the United States, that is worthwhile doing.”
Take a have a look at these lists of products that the most recent tariffs might make dearer, together with again packs, canine collars, strawberry jam and soy sauce. How many of those do you eat frequently? To what extent would possibly you and your loved ones be affected by these tariffs?
Do you agree with Mr. Trump and Mr. Kudlow that “any ache could be well worth the worth if it compelled China to deal with American corporations extra pretty”? In your opinion, are the tariffs worthwhile in the event that they imply curbing China’s affect on the planet? Why or why not?