China and US on brink of Trade War claim analysts and media

Beijing/Washington: With the US President-elect Donald Trump’s swearing-in ceremony approaching, analysts and the media have expressed that the possibility of a trade war between the two countries has increased. The events that have taken place in the last one and a half month after Donald Trump’s victory, are believed to have lead the two nations on the brink of a trade war. Trump’s appointment of an ‘anti-China’ economist while China has been warning that one person cannot change the disposition of bilateral ties comes as an event that’s drawing attention.

China and US on brink of Trade War claim analysts and media

Donald Trump had delivered aggressive speeches by making China the main focus during his campaign. This included serious allegations on China of looting the country and committing atrocities on the American economic system. To counter the increasing pressure from China, Trump had announced strict measures, declaring the country a ‘Currency Manipulator’ and imposing an excise of 45% on Chinese imports. 

Donald Trump’s victory in the presidential elections lead to a concerning atmosphere in China. It has now been brought to light that in his conversation with Donald Trump, the Chinese President Xi Jinping had given a warning message to Donald trump to ‘mutually cooperate’. But the events that have taken place in the last few weeks clearly show that Jinping’s warning has not had a significant influence on Donald Trump.

Even after China seized the US drone, Trump expressed his displeasure in unsparing words and advised that America should let China keep the Drone. This incident shows a glipse of the level to which the tensions between these two nations can go, claim analysts.

Trump who has shrugged China on the Taiwan issue has maintained his aggressiveness.  On Wednesday, Trump announced the formation of a new unit the ‘White House National Trade Council’. The Economist Peter Navarro has been appointed as the director of this council. Navarro is known for his staunch anti-China stance. He has written the book ‘Death by China: How America Lost Its Manufacturing Base’ which has been made into a documentary film.

Previous  threats from Trump and the appointment of Navarro all seem to only add to China’s troubles. It is said that China has also begun preparing itself to counter the newly elected President’s aggresiveness.  Information of a senior Chinese official visiting Mexico in the last week and  having discussed on increasing trade ties has been obtained. At the same time, the Chinese businessman Wang Jianlin, a big US investor, has warned that if Trump imposed restrictions on Chinese investment, thousands of American citizens will starve.

Only a few days back, Chinese government agencies had shown signs of taking action against American automobile companies in the country. Also, in the last month, a leading Chinese daily had threatened by saying that due to Trump’s policies, even a prominent American Company like the ‘Boeing’ would suffer. China has already begun strengthening its trade ties further with the European countries taking for granted the possibility of tensions in trade relationship with the US.

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