Tensions between Washington and Beijing are on the rise, with a full-scale trade war looming on the horizon, especially with US President Donald Trump’s view that China as an economic adversary remains unchanged.
Trump said the strong dollar “puts us [the US] at a disadvantage,” adding that “the Chinese currency is falling sharply.”
The Trump administration has imposed 25 percent tariffs on Chinese goods worth $ 34 billion, sparking a similar response from Beijing.
In a previous round of tariffs announced on June and July 6, the United States announced 25 percent tax on the value of $50 billion ion Chinese products to which China responded by imposing restrictions on the same volume of US imports.
However, despite the Chinese currency supposedly “falling sharply”, every major economist believes that the US will be on the losing foot if they continue their economic war against China. This is because China is a large holder of gold, holds a significant amount of US bonds, and is the worlds largest economic power that is willing to engage in trade with all countries without ransom unlike the US who continually imposes sanction regimes.
This is a major reason why countries are more willing to engage with China economically rather than the US, particularly in developing countries. It is for this reason that China has made significant in roads into the resource and labor rich African continent. While the US continually tries to impose its will against African states and engage in regime change against non-compliant leaders, China has relations with all states and does not interfere with internal affairs.
This same method of international engagement by China is repeated throughout the globe, and has put it in prime position to exploit resource rich countries that have been directly targeted by Washing, such as Venezuela in South America and Syria in the Middle East.