Haydn Franklin Haydn Franklin, Monday 19th August 2019, 9:35 AM GMT+0000
Trade War

China’s Losing the Trade War

China, the world’s most substantial economic power, has taken a significant dive with their trade war against the United States of America. From all accounts, the Chinese government has accumulated a substantial amount of debt. This has caused for an over-extension of debt, turning the economy into a downwards trickling spiral. Considerably that China is an exporting country and the United States has imposed significant tariffs on those exports, it’s unlikely that China will be able to bounce back to prior earned revenue until an agreement is made between the two nations.

The exported goods from China to the United States have halted, which has caused for the lowest GDP in eleven years. The manufacturing levels are down by 17%, and three banks have become nationalized already. The retail sales have dropped to 16% low, and gold imports from the USA have ceased. Chinese operated companies cannot sell or engage with the United States treasury, causing a liquidity crisis for the nation. Subsequently, this trade war has resulted in the effectiveness of the Chinese Economic Powerhouse being halted.

The Debt Crisis

The Chinese government has acquired trillions of dollars in loans. The government spent billions of their loaned money on building cities, where nobody once lived. The significant funds spent by Chinese officials was exponential, requiring that millions of dollars be paid off to the funding world banks daily. However, during this trade war, the funds earned by the Chinese government have dropped dramatically. It’s resulted in a decline of government services & eliminated jobs to adjust for the lost funds.

The stubbornness of the Chinese people is rooted in their culture & has been for thousands of years. Three banks have already failed, jobs are being lost, and government services are halting, the Chinese government needs to create a solution with the United States to regain prior funds. Without doing so, the country will face an economic crisis they’ve never seen before and become bankrupt. In the coming years, we could see the worlds most robust economic powerhouse become a dwindled nation.

The United States Stance

Donald Trump, the current president of the United States, began this trade war with the Chinese immediately upon his induction into office. The United States of America used to be the largest economic powerhouse worldwide, but in recent decades has lost that status to the Chinese. Trump wants to see America rise as an exporting & importing nation, with his actions as president already creating more than 3 million jobs across the USA. This number is set to jump dramatically if Donald Trump is elected for a second term in office.

Haydn Franklin

Author: Haydn Franklin

Hayden joined whichbroker.com in March 2019. He previously held positions at leading US facing financial news outlets. Hayden's focus is primarily Crypto and Forex news at whichbroker.com, however he is also whicbrokers long form content specialist leading him to write longer posts with an investigative angle. Hayden gradutated from the University of Chicago. Haydn Franklin can be contacted at [email protected], View all posts by Haydn Franklin

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