US vs. China: A Trade War Begins

The recent economic data has been positive and the investors across the world are

hoping to see brighter prospects that will help the economies to recover at a faster pace. The global economy is emerging once again, giving investors another reason to smile. However, analysts observe a change in the trading patterns of two giant economies, the US and China, in particular. Disputes over trading activities in the two nations may affect the recovery pace, predict analysts.

The US has slapped a 35% tariff on the tires imported from China. The US economy has realized that importing made-in-China goods is affecting their domestic manufacturing sector with the local manufacturers losing their jobs. Hence, the world's biggest economy is planning to cut the trade cord with the Chinese over the export issues.

Co-incidentally, the Chinese government has announced that it would probe into the option of clearing the auto parts and chickens dumped by the US in the Chinese markets. The China government has now put the ball in the US' court after the US started enforcing and tightening the trade laws with an objective to remain more competitive in the market.

Analysts fear that the implications of this trade war will harm the growing economy. According to Michael Pento, chief economist at Delta Global Advisors Inc, the US should have fair rules as far as trading with the Chinese is concerned. Transparency in trading markets will help boost the economic recovery of the country. "Our banker right now is the Chinese, and it's best not to bite your banker's hand," said Pento.

Hence, the two powerful countries involved in the trade dispute should remain alert as their impulsive actions can have a derailing affect on the world trade and none wants that to happen all over again after facing the bygone economic and emotional depression of 2008.

US vs. China: A Trade War Begins

By: White Digital Media

POST COMMENT

Making Money Online Is Much Easier Than You Think Book cheap flights online: Convenient way of Booking Flights Watch Friction online (2010) Stream Friction Now Online Stock Exchange Creates Opportunities For Smart Investors The Best Tips For Doing Your Christmas Shopping Online The Telegraph Launches Online Fashion and Shopping Website Watch Enter the Void (Soudain le vide) online (2010) Stream Enter the Void (Soudain le vide) Now Watch Legend of the Guardians: The Owls of Ga Hoole online (2010) Stream Legend of the Guardians: The Owls of Ga Hoole Now Watch You Again online (2010) Stream You Again Now Dealing With Lonliness During The Holidays Watch Howl online (2010) Stream Howl Now Watch Waiting for Superman online (2010) Stream Waiting for Superman Now Buy Apple ipod mp3 player accessories online