The escalating tensions between the United States and China endanger not only bilateral relations but the whole world. The two countries are known to have the strongest economies in the world.
When it comes to the military, they both spend a lot of money and have also tried to show how they are thought leaders in using high-tech like chips to control various operations.
However, what is currently being observed between these two countries poses a risk to their strong economies and also to the whole world.
The most recent escalation was when the United States ordered China to close its consulate in Houston, which they did back by ordering the United States to close its consulate in Chengdu.
While it is expected that such steps will not get better but worsen, these two countries and the world will offset the negative aftermath.
One sector that will have repercussions is trade. Both countries have already suffered enormous losses as different measures have been taken in each country to curb the current world pandemic. The trade sector was also affected by Beijing’s technological ambitions and trade surpluses in the 2018 customs war.
So if talks take place sooner than later, the world could face downward pressure on trade. These two countries are major exporters.
Despite Trump introducing punitive tariffs on Chinese goods, China remains the third-largest market for U.S. exports. There are also some American companies in China like General Motors Co and Burger King.
According to the US-China Business Council, sales of American agricultural goods, semiconductors, and goods in China decreased by 11.4% last year. However, it was still over $ 100 billion.
China is also the largest export market for IOWA and other American farms, although it was shaken negatively after Beijing suspended imports of soybeans and also raised tariffs on pork and other goods.
This was followed by an increase in sales of soybean exports to Brazil and Argentina and the resumption of China to buy inexpensive American beans.
If these two countries resolve current tensions and resolve border differences, not only their exports but also other countries around the world will supply factories in China and the United States with raw materials.
Another sector that will also be affected by the currently escalating tensions between these two largest world economies is technology. They are the world’s largest manufacturers of computer, medical, and other technologies.
Brands like Dell, Apple, Hewlett Packard, and many others have relied on Chinese factories to assemble their products. While there are also some factories in China that ship chips from the United States, the current disruption by the administration of these countries threatens to halt the flow of supplies and exports.
Security will also be a threat. The United States, which has long been a dominant military force in the Pacific, is now exposed to a threat from China, which has two operational aircraft carriers. They also have an arsenal of missiles that are seen as a threat to the United States.
Wayne Sims is the Lead Editor for Chroniclex with 12 years of experience. Wayne has been working for Many Large Online Publications for nearly a decade and has published his articles in many prints and digital publications including Erieview Newsstand, Bond Court News and Private Entertainment. When Wayne is not busy writing She likes stitching.