19 May 2024
Trade war can make China stronger 2

Trade war can make China stronger 2

Degrading relations with the US will cause China to accelerate production localization and reform to compensate for economic losses.

Engineers at Suzhou Osaitek Photoelectric Technology’s factory near Shanghai rely on necessary components from the United States to produce precision measuring machines used in the auto industry and many other fields.

The new import taxes that the US and China imposed on each other in the trade war have made American goods too expensive.

Chinese workers in a phone factory in Anhui.

The world’s two largest economies have imposed import taxes on hundreds of billions of dollars of each other’s goods.

However, this conflict is also encouraging the Chinese government and companies to make changes that could make the economy more competitive and attractive to foreign investors.

China’s dependence on American technology was exposed this year, when the US Department of Commerce banned domestic companies from selling essential components to Chinese telecommunications equipment giant ZTE.

The ZTE crisis has reinforced the belief that China needs to be more self-sufficient.

Developing high technology, such as semiconductor products, can help China reduce its dependence on the US.

China’s campaign to build a high-tech manufacturing industry is one of the main bottlenecks in current US-China trade relations.

However, deteriorating relations with the United States could cause China to accelerate high-tech cooperation with Japan, South Korea, Israel and European countries, Kennedy said.

Up to now, China has made quite a long progress.

The new import tariffs also raise questions about China’s attractiveness as a manufacturing hub.

Beijing has long been criticized for economic policies that keep foreign companies in China while supporting domestic businesses.

Analysts and business leaders once doubted China’s commitment to reforming the business environment for foreign investors.

Beijing has recently taken many measures to support the slowing economy, such as tax cuts.

Leave a Reply

Your email address will not be published. Required fields are marked *