Page 14 - Issue-16

ELITE ISSUE 16, FEBRUARY 2020 PAGE 14

Fates of The Trade

Written by: Mohamed Baghdadi War Between

PhD Researcher Washington &

Beijing

Is there a trade war between Washington and Be ijing? What
This agreement is a temporary truce after two year s of lean
are the implications for global markets? And to wha t extent can
years between the two countries. In light of this a greement,
this war be fought between the giants of the global economy? Beijing pledged to purchase additional US goods wor th 200
How do we evaluate the current economic situation b etween the
billion dollars in the next two years, and the agre ement to
two countries? The trade war between China and the United
protect intellectual property was also requested by
States began after Donald Trump announced in the be ginning of
Washington. Observers believe that the agreement co uld open
2018 his desire to impose fees on Chinese goods ent ering the
the way for the two parties to end the state of tra de instability
country, where it exceeded 50 billion dollars to pr otect its
between them.
markets from Chinese goods. For its part, the Chine se

government imposed customs duties on more than 128 American
And the first stage of this agreement could wor k to reduce
goods in response to The American decision to impos e fees on its
the conflict that has been going on for two years. Knowing
goods. Washington has also activated its previous d ecision to
that, in this context, Washington agreed not to inc rease the
impose fees estimated at 34 billion dollars on Chin ese goods, and
customs taxes imposed on Beijing, while China agree d to
thus the two countries became in the midst of an ec onomic trade
import other American products in the future at a v alue of 200
war to preserve the internal markets of both countr ies. This leads
billion dollars. Knowing that the trade war between Beijing
us to another question: Will this war end what has been called the
and Washington that broke out two years ago has alr eady
open economy? Is each country retaining its decisio n to impose
caused the slowdown in the international economy, w hich
customs duties a return?
prompted the Organization for Economic Cooperation and

Development to assess its growth forecasts since 20 19.
Washington also made it clear that the direct reason for

making this decision is the unfair trade practices that it had come
After a series of recent decisions by the end of 2019 and the
from Beijing for several years, "including theft of intellectual
beginning of 2020, both countries concluded a bindi ng
property. In a related context, we find that the Ch inese Ministry
agreement between the two parties, which is conside red a
of Commerce imposed customs duties on several Ameri can
historic pause to “suspend the unprecedented trade war
commodities, including: beans Soy, aluminum, cars, planes, pork,
between the two largest economic powers in the worl d. Beijing
steel, fruits, and Washington, on the one hand, imp osed tariffs for
also pledged to buy additional US goods worth $ 200 billion in
more than 1,300 items including: batteries, medical devices,
the coming years, and the agreement also saw provis ions for
weapons, aircraft parts, flat-panel televisions, sa tellites, and
the protection of intellectual property and conditi ons for the
weapons.
transfer of knowledge in its various forms. With Be ijing.

Therefore, the trade war is still going on between the two
As part of the two countries ’keenness to stop the trade war that
giants of the global economy, and we can say that t his
broke out two years ago, the US President signed on January 15th
agreement is nothing but a truce until both countri es think
with Chinese Vice Prime Minister Liu a trade agreem ent, which
again to evaluate the current situation.
was described as" historic. "

ELITE ISSUE 16, FEBRUARY 2020 PAGE 14