"Trade wars are good, and easy to win," President Trump tweeted after announcing heavy tariffs
on steel and aluminum imports.
So today, we are counting down the top 5 ways China could "easily win" a trade war with
the US.
Starting off at number 5 might come as a surprise, but China could limit the number of overseas
students studying in the US and limit the number of tourists visiting the US.
Some people in the US might consider this a good thing on the surface, but it would
have a major impact on the US economy.
According to the US Commerce Department, Chinese tourists spent more in the United States in
2016 than tourists from other countries.
Chinese tourists spent over $33 billion in 2016 and that number has risen every year
since 2009.
Meaning that China could impact the US's tourism industry if the Chinese government
restricted travel to the United States.
Another aspect of Chinese overseas spending in the US is international students studying
in America.
According to Caixin, "overseas Chinese students spend around $100,000 each per year" and
there are over 300,000 Chinese students studying in the US.
This means that Chinese students contribute around $30 billion to the US economy each
year.
Both groups, tourists and students, contribute around $65 billion annually to the US economy,
which could be limited by the Chinese government, if a trade war ensued.
This would have a major impact on local economies, especially college towns.
Another way China could disrupt the US is often overlooked, but extremely important
in today's hi-tech society.
China is the largest producer of rare earth metals accounting for over 85% of the world's
total production and it is also the largest exporter to the US.
Rare earth minerals, though not actually rare, have unique chemical properties that make
them essential for wide-ranging technologies, including smartphones, hybrid cars, green
tech, and high-tech weapons.
Currently, the US cannot produce enough rare earth metals and relies on China for more
than 90% of its rare earth imports.
Coming in at number three on our list is "Market Access".
For years, US companies have complained about access to the Chinese market while China has
continued to open up and follow WTO guidelines, but if a trade war was started by the US,
China could restrict further access to its markets.
China could also apply pressure or place regulations on US companies that are already operating
in China making it more difficult for these businesses to operate and compete with local
companies.
China's economic system is based on a Socialist Market Economy.
This allows the Chinese government more flexibility when dealing with an economic crisis.
According to the NY Times, "The Chinese government has much greater control over the
economy, allowing it to shield the public from job cuts or factory closings by ordering
banks to support industries suffering from American tariffs."
Socialist governments provide citizens and businesses with a greater safety net allowing
the Chinese economy to better weather prolonged tariffs, which means China could withstand
US tariffs for a longer period of time than the US could withstand Chinese tariffs.
And that brings us to our number one way for China to win this trade dispute: Tariffs.
China has a variety of ways to impact US farmers and manufactures.
Many experts have pointed to Soybean exports.
According to the NY Times, "The United States exported more than 30 million tons of soybeans
worth more than $10 billion to China last year, over 57 percent of total U.S. exports
of the crop."
Many of these soybean farmers supported Mr. Trump during the last election and helped
him win the presidency, but if these same farmers are losing money and forced out of
business, then they will put pressure on the US government to stop this trade dispute.
Another major tariff could be placed on US manufacturers like Boeing and General Motors.
These companies provide 100's of thousands of jobs in the US manufacturing industry,
and again like many farmers, these workers also supported Mr. Trump in the 2016 election.
If these two important groups pressure the US government to back down from its unprovoked
attacks on China, then the trade dispute could end in China's favor.
So, there you have it; the top 5 ways China could win a trade war with the US, but the
best way for everyone to win is to not start a trade war!
President Xi Jinping and Premier Li Keqiang have both called on the US to stop escalating
this dispute and work within the international rules and laws of the WTO, but as long as
What do you think of these unprovoked attacks by the US?
How can both countries work together to solve this growing problem?
Leave a comment below to share your thoughts and don't forget to like and subscribe for
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