Topic: Rising tensions and effect on global trade (Read 915 times)

There seems to be no end to this situation, on Aug 6th, the U.S issued a 45 day ultimatum for Chinese companies; bytedance and Tencent to divest their operations within the country and destroy all data they possess on American citizens, about a week later the ultimatum was extended to 90 days, probably to allow enough time for the transition process as Microsoft and Oracle had expressed interest in purchasing the U.S operations of tiktok.

This weekend, Bytedance are reportedly planning to challenge the executive order;

This legal step is most likely an attempt to improve their bargaining position as negotiations continue. It would not stop the process of then divesting their operations within the country.

I guess banning Chinese stuff shouldn't really matter that much, think about it china has banned almost all world stuff within their nation and stole IP from them and built their own things. Right now there are soooo many stuff that they stole from the world and just copy pasted and put their own brands on it that they are not only manufacturing place for the world, they now have their own brands as well that sells.

So in the end, I would say ban every single thing that is Chinese owned, if it is apple that manufactures in china but owned by apple, take it and accept it, but if it is huwaei or whatever that is fully Chinese, just ban them all together. What are they going to do? Ban you from working with them? They can't earn money from anything else, they have to manufacture, if they do stop working with you, they will starve to death once again like in history.

More recently, The United States have imposed a ban on operations of Chinese apps within the country, notable Tiktok and WeChat. A day after the Mike Pompeo started a 'clean network' program;
"On Wednesday, U.S. Secretary of State Mike Pompeo expanded a program dubbed "Clean Network" to prevent various Chinese apps and telecoms firms from accessing sensitive information on U.S. citizens and businesses."

The U.S president Donald Trump issued a sweeping ban on both Chinese apps, citing security risk as the main reason. This ban which was made on the 6th of August, 2020 and would take effect on the 20th of September, 2020 (45 days after).

Winners and lossers
The losers here would be Tiktok, WeChat owned by Bytedance and investors Tencent holdings all of which may have already suffered loses or are estimated to. China released a statement following the announcement;
"China said on Friday the companies comply with U.S. laws and regulations and warned that the United States would have to "bear the consequences" of its action.

"The U.S. is using national security as an excuse and using state power to oppress non-American businesses. That's just a hegemonic practice," foreign ministry spokesman Wang Wenbin told a media briefing."

There are however winners in this, Microsoft are looking to purchase Tiktok USA before the end of the 45 day ultimatum, this would include all operations within the country. As the brand is banned it would definitely be rebranded.
Instagram are also planning on launching their new video based section, which has so many similarities with Tiltok. The weakening of their competition could give Facebook a route to exploit and gain more monopoly over the social market.
This was not lost on Tiiktok who retweeted the launch tweet by Instagram with a comment; Well... this looks familiar


Source - https://www.yahoo.com/news/trump-issues-orders-u-ban-023044461.html

This is not practical or possible at all, because this is simply how the economy works, as a country is making up his way up to the top ranks it begins to rise its industrial capacity but once it reaches the top or near the top this changes and begins to export their industries to other countries to manufacture products at a cheaper rate than at home, this happened to the UK when it was the biggest economy of the world, it was the financial centre of the world an its currency was the reserve currency of choice, eventually they gave up all of that to the US and now we are seeing the same transition from the US to China.

Take for example the trade war between China and America which is basically an ideological war. Namely between democracy and state capitalism. The role of the private sector in the United States is very important but in China all regulated by the government. America is anti-state capitalism because its foundation is an authoritarian state, therefore the government uses repressive power of the iron fist to restore the market. But Trump is currently very jealous of dictators like XI Jing Ping & Vladimir Putin. The existence of an iron market suppression prevents the state and free market from being created. It will be very difficult to solve the economic problem from politics because it is a tool to achieve economic, group, or individual interests.

What really makes it more complicated is when politics and trade collides because when political relations between nations experiences conflict, the flow of trades is totally affected most specially when the nations have decided to ban imported products from each others country. That is why the presence of United Nations alliance to keep everything is track and in proper order is really important so that such tensions or conflicts between nations will be lessen or better be prevented to avoid the serious direct effect on the trading flow so it won't worsen to the extent that the global trading will be affected.

Specially at times like this that the lack or shortage of goods and products are now reliant to those who have, having a strong relationship between nations is in need to be able for the trade flow to be free benefiting both nations exchanging products to provide each other's needs. Tensions between nations will not provide any good on any angle you will see it because it will just make the situation a lot more complicated. So better fix such conflicts to avoid negative effect on the global trade.

Until now we cannot easily testify if this speculation about China is really true because if they are  really prepared about the virus, then there will be no chances that they will face another wave of virus but based on the news, China was hitted another wave of virus. In the end, it's only the Chinese government knows the real reason behind all of these.

China is basically starting to get some sort of backlash and that was something we would have expected long time ago in late 80's but lets be happy that it is starting. India at first obviously because they are literally at war with them, Hong Kong and Vietnam and Taiwan obviously for related reasons and there will be a ton of other countries who are totally unrelated in the war get into it for support of these nations as well.

UK for example is one that I am considering as first western nation to actually do something about China, not actually go to war obviously, that would be silly, but at least they could ban all Chinese product and all trade with china, do you realize how China as a whole nation relies on other nations buying from them? The moment you ban trade with china between some big nations, China will suddenly become incredibly poor.

Lets not pretend that what is happening is not huge, a pandemic like this was long overdue and we were not prepared for it so it is obvious we were affected greatly by it, however the responses of many countries to this crisis has left a lot to be desired, and if things do not improve then we could see an even bigger deterioration in the relationships of every country as each one tries to protect their populations while not caring about the fate of the people of other nations.

The world economy is currently going through a fragile condition and the political conflicts of different countries and the various measures taken as a result are shrinking world trade which is having a huge impact on global trade.  Especially due to various political and military measures organized around the influence of the superpowers, trade between these countries is being affected, which is causing huge damage to the trade and the economy of both countries. Stopping the use of technology services and reducing import-export trade is hurting both countries and slowing down their economic growth. So sanctions and interference in various countries are stifling world trade and growing tensions are undermining industrial productivity.

I think that a wider range of countries has an impact on the global economy, including the countries of the Middle and Far East, as well as Russia. As always, oil prices play a water role not so much for the world economy, but for a particular country. Undoubtedly, an economic war has been going on between China and the United States for a long time, because they want to have their own spheres of influence and at the same time adhere to a leading position. But one way or another, the Chinese economy today is much stronger than in the United States, and in this situation it was the coronavirus that played a major role.

This has happened similarly between China and the US. The reason is that the political tensions between countries are due to the corona virus that has arisen in their own countries and they are the countries that have prevented viruses the fastest. That's why conspiracy theories suggest that the Chinese government created the virus and caused many countries to resent and retaliate. If the questions are not answered among countries, the economy will probably be in recession in the near future.

For political reasons, if China is going to be banned from importing thing into America then India will be the next choice so the country will get lot of revenue and already Google and Faebbok started to invest their money in India for the future development which will be followed by most of the bigger companies so India is trying to be friendly with every country.

Most of the users mentioned India to be the puppet of America, because the decisions made by America is followed by India. This is true, and the same can be known from the press meets provided by Trump and Narendra Modi over the past few months. Both in some form used to describe the support and the relation between both the countries for some reason. Even in today's press meet Trump has mentioned India topping in covid-19 testing next to America. In my view in someway America is gonna benefit out of India.

I don't think China will stop them from making imports because they banned their apps, if they do, then it's their own loss.
Every nation implements some rules that in one way or the other differ from others. They might have reasons that led them to believe that these applications' developers are biting more than they should take lol. they have made a decision to ban them, and it's not wrong, it doesn't stop the two countries from doing business in the future.

Also, the Indian government is not the only one that has taken a step to ban applications from China that seem to be malicious or something of sort, so it doesn't have anything to do with the second point you stated.

A rising tension between two nations would seriously affect the economic development of both countries involved most specially when there are products are services that are being relied by each country on one another.

We all know that each and every countries do have their weaknesses or those that they lack when it comes to resources making it a way for countries to do importing of goods and services from other countries that have what they need and in exchange they will provide that country of what they have to fulfill the lack in needs of their companion. That is how trading occurs. It is really important for countries to have a good relationship with one another to maintain a balance on the global trade having to presence of tension or misunderstanding ti occur that might create war.

That is why there is an alliance of different countries or known as the United Nations to talk about certain issues needed to be resolved to maintain peace talks and help each other out to help the rise of their economy. Having tensions between nations can affect not just the involve countries but as well as its people and the surrounding countries because the flow of trade will be distracted or interrupted and that would be a big problem.

Balance must be maintained between politics and trades to avoid tensions to arise and not to take effect on the flow of global trades.

China gets a lot of war without any specific reason in my opinion.
Probably India is US's puppet so they use them in order to fight China and do not let them be the number one largest economy by far.
They have found ways to tackle this war well...

In my opinion in diplomacy between countries, the core of the national economic interests while politics are used as a tool to achieve these national interests. Politics is dynamic because relationships are more actions and reactions. I think the UN has lost its relevance for a moment in international politics, especially after the corona pandemic. In addition, the UN can only condemn, but not impose sanctions. In addition, the existence of a veto in the UN security council is prone to manipulation and exploitation of large powers. The United Nations is not a superior institution over countries so that the goal of achieving world peace is only rhetoric.

International politics is like a game of chess, involving each country's strategy competition with all the potential and weaknesses possessed by a country. There are no eternal friends/foes, there are only eternal interests and ultimately are a matter of money. Diplomacy is a bargaining process although sometimes in the end sometimes there are no win-win solutions, only loose and win solutions, because in reality the strong must oppress and exploit the weak.

Those big countries still surviving and they are managing not to fall unlike with other small countries which really affected of this pandemic.


Once vaccine are available this business will continue, though some will struggle but surviving is very possible.

Trading inserted with the influence of politics can turn out to be good or bad. We all know that different nations belongs to an alliance which is the United Nations on which each and every country are talking about helping each other out providing the necessities and lack of resources of one another which will benefit both. Inserting politics on it is a great help since leaders of the countries are the ones representing their nation to find better solutions to resolve problem. But once tension have build up between one another, there could be a serious effect on each country that once benefitted on the products and services they rely on the country where they certainly get their goods with.

Maintaining peace talk between nations and having calm conversation is a great intervention to prevent a serious case of war to build up most specially if we are talking about big countries. Politics and trading are good to be compacted together if the limitations of power will be controlled so that no one would feel too dominant and the one is the weak one to avoid tensions to build up that can affect the flow of trades on each country. The alliance of the leaders of the world is the key why flow of products and services are being properly maintained which is a good inclusion of having good relationship between nations that are being talked about using politics.