The trade war between the US and China might come to an end soon in the coming days as both sides have come up with preliminary agreements.
It has been a year and a half since the US and China; the two major economies of the world have been head-to-head against each other. With both sides refusing to give an inch of space to the other, each tariff levied against each other added fuel to the fire. On the other hand, the economic slowdown in China has given boost and wide opportunities to its neighbouring countries like Taiwan and Vietnam. The recent negotiation between both the sides has resulted in a preliminary deal and a truce might be on the horizons in the near future.
In fact, China has already resumed buying soybeans from the US which it was purchasing from Brazil during the disputed time period. Also, the US will be curtailing and dropping off the taxes it levied on Chinese imports of worth $120bn. While the US President Donald Trump has accused China of playing the “developing nations” card to its advantage, the ‘red dragons’ have emerged as an economic challenger and stronghold.
Furthermore, the US-China trade war has changed the course of the global trade. Some see it as a face-off between two colossal economies; some see shades of an emerging hegemon and some predict the rise of multilateral economies. There has been manufacturing slowdown in China as the investors are worried about the continuity of the trade relations. A new deal signed between both the sides will surely bring relief in the face of global economic meltdown.