Since World War II, the United States has been an economic powerhouse that was rarely rivaled. However, the United States firm economic standing is being challenged by up-and-coming China. The Chinese economy has drastically grown to replace the United States as the largest exporter in the world. It is also the second largest importer. This rising competition between the two most powerful economies has led to an unstable relationship which could wipe out global post-recession gains. Despite the America First policy of the current administration, there are many reasons to change courses and attempt to develop a more amicable relationship with China’s stance supported by organizations like CUSEF (check out their LinkedIn Profile here).
The decaying relations and an increase of tariffs have put American industries and the American consumer at risk. The Chinese tariffs on agricultural products have hurt the farming industry especially soybeans, cotton, and corn. As the largest importer of US soybeans, China is a huge market that soybean farmers rely on. China also demands around a quarter of the world’s corn supply so American farmers do not want to be priced out of the Chinese market due to tariffs. To keep American industries afloat, the American government needs to cool tensions with China.
In addition to hurting local businesses, the trade war between the United States and China has increased prices for American consumers on a variety of products the US commonly imports from China. Companies like Wal-Mart and Coca-Cola have already announced that prices could increase due to tariffs on necessary construction materials and more products are at risk. The local DC consumer could end up paying more for electronics, solar panels, home appliances, cars, clothing, and cosmetics. It might even affect the cost of beer. And while the economy has been growing, wages have risen which means a lot of Americans do not have the extra cash they might need to pay for these necessary items. The money for those items could come out of their savings or Americans will buy less which could slow economic growth. This will not just affect farmers in the Midwest but our very own DC brethren.
Our current administration and many Americans may be angry about the rise of the Chinese economy, but a positive relationship is still our best option. A stalemate in this trade war is the best way to preserve American businesses and aid the American consumer.