Five cards China holds in a trade war with the US
Summary
There is currently a trade war between China and the US. This means both countries are charging each other extra money to bring goods into their country - these are called tariffs. China is using different methods to deal with the US tariffs.Key Facts
- China and the US, the world's two biggest economies, are in a trade war.
- China's goods going to the US have up to 245% extra cost (tariffs), and the US's goods going to China have a 125% extra cost.
- China's government, led by President Xi Jinping, says it's ready to talk but will keep fighting if needed.
- China can deal with the costs because it's the world's second-largest economy and has over a billion people who can buy things within the country.
- To help its people spend more money, China is giving them benefits like cheaper household appliances and special trains for retired people.
- China is not worried about what its people think in the short-term because it doesn't have elections like the US.
- China is spending a lot of money to improve industries like electric vehicles and artificial intelligence.
- Chinese companies are a big part of the manufacturing process, which makes it hard for US companies to move their business elsewhere.
- China has been preparing for this trade war since the time of the previous US President, Donald Trump.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
