Topic: Effect of policies and politics of developed and developing countries on India’s interests. Disaster and disaster management.
2) A US-China Trade War is in no one’s interest,full-blown trade war would only weaken the global economy. Discuss.(250 words)
Why this question:
The question is in the context of recent announcement made by President Donald Trump that the United States would raise tariffs on 200 billion dollars of Chinese goods from 10 to 25 %, because trade talks are moving “too slowly.”
Demand of the question:
This question seeks to examine the negative impact of the US – China trade war on the global economy.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Start with brief introduction on the background of the context.
Discuss the following points in detail:
- Background – The two sides have imposed tariffs on 360 billion dollars in two-way trade since last year but Trump and Chinese leader Xi Jinping agreed to a truce in December to refrain from further escalation.
- Provide for an overview of the trade wars going on in between the two countries –
- Beginning: US President Donald Trump has complained about China’s trading practices since before he took office in 2016. The US launched an investigation into Chinese trade policies in 2017. It imposed tariffs on billions of dollars’ worth of Chinese products last year, and Beijing retaliated in kind.
- Breakthrough: After months of hostilities, a breakthrough of sorts came in December. Both countries agreed to halt new trade tariffs to allow for talks.
- Now President Trump has decided to hike existing tariffs.
- Why tariffs? Tariffs, in theory, make US-made products cheaper than imported ones, and encourage consumers to buy American.
- What is the impact so far? Both US and international firms have said they are being harmed. Fears about a further escalation has rattled investors and hit stock markets. The IMF warned a full-blown trade war would weaken the global economy.
Conclude with way forward .