Topic: What is the cause of trade war between USA and China? (Read 214 times)

I think that in the case of serious actions by America, she will not be the winner, because China is now a very strong country!

This is the main point you have picked here. Chinese good have been imposed tariff on and this leaves no or very less profit for the Chinese companies who are exporting the goods thereby leaving the Chinese economy in deficit which is a matter of concern for China and they responded with similar actions.

This is the reason behind the war between both the countries but this is not intense for China knows that it has to depend for its exports on the US while US know if China stopped using dollar, they will be bankrupt so these are very normal things.

   The above topic as stated is a bit sensitive to discuss on this thread. my one cent opinion, both government have very Critical issue to resolved, the have contradicting policies on trade and power issue, standing on different ground that's why the issues are not resolved, i just hope that this won't escalate to more problem that everyone would not want to happen.

What actual caused the trade war between the two Nations is the act of Chinese government longtime abuse of the broken international system and unfair practices as said by Trump cause he raise a campaign to fixed it.. However,  we both know the habit of the Chinese government through the way they treated bitcoin.
The trade war will harm both nation business interests and I don't think it will total have an impact on bitcoin.

I think that both countries stand to lose their international relationship with one another. This is the biggest thing they will eve lose, of this happens China will find another way on how ot can get back to U.S. and USA will do the same thing and the cycle will continue. This two super powers having a big tension won't be good for us I don't know the exact thing that will happen but I know we will be somehow affected by it as their markets really affect the global markets.

Obviously there is no way that they won't lose certain things because where two countries are not in good terms, they will lack bilateral coorporation  and every other thing countries  who are not in terms lack, financialassistants etc.

I have a one sentence reply to your question. I can write a nice article on this topic but here I will resort to a single sentence. The reason for the trade war is,

"The ego problem between two strongest economies in order to decide the dominance for coming decades"

This is how I see the issue and due to this, the stock market is bleeding worldwide!

Consider that a seller can sell goods to anyone at all.   The question then is there other buyers besides a few hundred million consumers in USA.   Theres billions more people in other countries and many with resources China does need, they lack oil for example.   

Right this moment USA is the benefactor of cheap imports, especially if the goods are paid for in finance such as bonds represent in trade balance between the two countries.     I thought this idea of tariffs as a weapon was settled by the great depression but perhaps enough time has passed that we forget the lesson and must repeat it.
If imports cost more, it represents raised costs to that country.   For example USA produces enough oil to be a OPEC member however it also consumes far too much, there is no excess oil.   If there was a great excess of any product I could imagine tariffs as somehow a possible good but we all know USA is a giant importer now and it'd take a decade to alter that if ever.

So far it is a war of words.   I'll only accept the war happened when we have changed presidents as a result of that.     We'll know when its a crashed, before then there is alot of anticipation and wincing of potential events.

I don't think someone has to be an economist to be able to attempt some explanation. One major thing I think is that, the only way such can affect cryptocurrency is that, whether the both parties were having agreement to adopt it in their location and might have a change of mind towards it.

many bitcoin supporters promote this narrative. i'm skeptical.

first, we should distinguish between currency devaluation or currency collapse ("as the fiats go down") and an economic recession or financial crisis.

check out a chart of DXY (US dollar index) vs SPY (US stock index) in early 2008 - early 2009, when we were in the throws of the 2008 financial crisis. the DXY rose sharply, around 27% during this period. the SPY dropped over 50% during this same period! so currency devaluation vs economic crisis mean very different things.

i believe a stock market crash (which would accompany any major market downturn) would be very bearish for bitcoin. crypto, having been established in this world for a whopping 9 years, should be considered a very high risk asset. risky assets always suffer during major market contractions, as financial leverage winds down and capital escapes to safe haven assets. bitcoin is absolutely not considered a safe haven yet, not at all.

will try to answer as what i know

1. trump regulation about import stuff to USA
2. i think US didint get cheap stuff from china , and china cant get money from that (?) , also make $ pair to other currency strengthen
3. yea i think ,

It's a war like a cat and a dog fighting, each watching to other trying to find something to cry at the scandal on media.
It's rather a Pacific West VS Pacific East battle. During the wars in the Asian area, Both countries had a relationship problem
You know USA and China are the 2 biggest economies worldwide and maybe Trump is not able to remember why he started the problem.

It's like a man and his wife trying to find out who's dominant and dominated 

In my view trade war between china and USA have some effect for crypto development especially for crypto mining that graphic card from china will very expensive because USA will determine new price for it and the price of that tool also will increase and the profit also will gradually very less especially for low cost mining will not get profit anymore

Aside the economical terms and the graphs that they use to justify the angle they are both pursuing, its personally about ego. Ego of both of them feeling they are making the other survive and therefore they should get more for their contribution in which they fail to forget that they both need each other to survive if not for their sake but for the sake of the citizens


The extent of their losses is something that cannot be estimated but one thing is sure, both parties will not remain in the position they are before the beginning of this trade war. Companies that have businesses in both countries will start facing some increased amount of pressure on both side that would then dip into their profit position.


Impact on crypto, I don't see it happening because if it would have been, we should have been seeing it. Crypto is not the currency of transaction, one of the party has decided crypto would not flourish in her territory among other factors.

Learn about economics before, but have no deep knowledge about it. But as an observant and a citizen of a country that is spliced between this two superpower, my opinion will tackle only on that superficial insights.

• The USA is always on top when it comes to everything and China is the emerging power that is within a step nearer to replace this world order.

• A Challenger is competing to a champion more likely and the eagerness to control the trade industry worldwide creating sparks and conflict that war is imminent.

• And while China is establishing a stronghold in the West Philippines sea, the trade path of USA to Asia is now in danger.

I'm not hoping for worst.

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Don't seem any impact on cryptocurrency as of this days, but it soon may come.

Actually im not an economist but in my own opinion,there is no trade war between the U.S and the country of china,maybe there is some misunderstanding between them when talking about crypto investment,because the chinese government dont want the foreign exchange manipulate to there country as an investor and they want  to create have there own crypto coins by means of investment in mining and have there own crypto exchange.

The cause of this war started from the social system of the two countries, one side is capitalist, one side is socialism. And you know what I mean here? But do not lose the stability of the economy, the prosperity of the country. And then there are the implications that can affect the cryptographic market.

Not really an expert into this subject but here goes my two cents for this matter:

1. It all started when Trump's administration instigated on imposing tariffs on Chinese goods amounting to $34-bn. In return, the Chinese also imposed tariffs on American goods amounting to $34-bn as well. Both sides have their own explanation as to why they imposed these tariffs, but we all know the reason why: being the economic superpower in the world.

2. Chinese have a lot to lose on this side since a bulk of tech and goods comes to the US frequently, and if they were to impose tariff on those, it will be quite a huge loss, though the Chinese can still ship it elsewhere given that most products nowadays are made in China. Meanwhile, the US can ship her goods to wherever she likes given that a lot of countries in this world support American products; the US may not send goods to the Chinese to avoid such dues but she still has some place to take that stash.

3. Personally, I think there would be no direct effect on the cryptomarkets given that this only pertains to certain goods that are being exported by the two countries. Bitcoin is not included to those as it is a decentralized currency not controlled by anything or anyone.

....

I'll try to answer although I should warn people they might not like my responses. 

#1 The US vs China trade war occurred as a result of international banking cartels attempting to setup china as the world's number one economy at the expense of the united states. For those who watch the news, it helps to know china is a million times more guilty of anything the media criticizes Donald Trump, russia or anyone else for. China receives the most favortism and privileged treatment out of any nation on earth. One way they accomplish this is by heavily regulating or restricting US business for "environmental reasons" while completey deregulating the business of china. This is the reason the US implements restrictive programs like plastic bag and straw bans which will hamper the ability of american enterprises to conduct businesses, while de-regulated china has no similar measures, despite china being a significantly greater polluter on a global scale. 90% of the plastic pollution in oceans comes from asia and africa. Legislature like the paris accords aren't designed to address real causes of plastic pollution found in asia or africa, rather they are designed to unfairly penalize the USA and cripple its economy. Donald Trump is one of the few who comprehends this and is willing to improve market and economic conditions to be more fair to the USA. That's the real reason behind the trade war despite what the false media narrative says. People might hate me for saying this but it is true.

#2 China will lose a lot of ground they've gained. IMO the USA won't lose anything due to economic policies in place being deliberately designed to weaken the US economy while inversely strengthening china's econ. On some level, people might realize there is a lot of money and resources in the world supporting socialism. There has to be for it to be taught in schools and for the massive anti-capitalist sentiment we've witnessed in recent times. The ultimate goal of those who push these agendas is for capitalist USA to crumble while socialist china rises to become the world's main global power. I think this is what they desire in their hearts. The trade war puts a monkey wrench in those plans. The way centuries old powerbrokers supporting socialist agendas play the long game it may only be a temporary setback for them without any real lasting repurcussions.

#3 Its difficult to say the impact it could have on crypto. It may have no impact at all. Things like economic sanctions and trade wars while having repurcussions for economies and society, might carry little or no effect on crypto. I don't remember bitcoin's price moving much when economic sanctions against russia were announced. It is possible that bitcoin and crypto have become globally decentralized enough to be insulated against things like sanctions or trade wars.

The effect may be reversed for bitcoin, it might instead go up as the fiats go down.



I think the trade war has to do a lot with the abusive behavior of the Chinese government. They take american IP from US companies and then steal it. The US wants to protect it's IP because a more technologically advanced country presents a greater military threat.


Other than that china has a lot more to lose than the US, although both countries would suffer. The reasons China has more to lose are more than one.

The obvious one is that China sells a lot more to the US then the US to China, therefore the US has less to lose.

The less obvious problem is that the Chinese government only holds power as long as the economy is improving, else the people might start a revolution and heads will roll.
The Chinese economy seems to be facing many big problems and the last thing the Chinese government wants is problems with trade.

i'm not an economist, but i'll give it a try.

1. trade wars stem from protectionism. the trump administration imposed sweeping tariffs on chinese manufactured goods---the underlying idea being that by making chinese products more expensive for american consumers, they'll buy elsewhere, perhaps domestically. china responded in-kind. trade wars often evolve as tit-for-tats like this that can snowball into larger conflicts.

2. economic stability; prosperity. trade wars have historically preceded economic and military crises.

3. it depends on the magnitude of economic damage. if extreme protectionism ushers in a major recession or depression, that could have drastic effects on world markets. as high risk speculative assets, i believe the crypto market could decline considerably in such a situation.

I don't know if this is the right place to ask this questions, but since it has to do with economy, I feel i should ask it here.

For some months now, I keep hearing about the trade war between United State and China,

I have tried to research on what is the actually cause of this war but I can't seem to understand what is the actually cause of the war.

My question is this....

1. What is the cause of the trade war?

2. What are the things the both stands to lose because of the war?

3. Does it have any impact on the crypto market?

I want economist in the forum to help me answer these questions.