The burgeoning clash of two biggest economies of the world – US and China has the entire world economy on toes. Allies and rival countries seem to be lost in the grit of these tariff wars. India, however, takes an optimistic stance on this and hopes to emerge as a strong contender in this wave of changing dynamisms of economic superpowers.
By Aayush Kukreja,
The new wave of reclusive political ideologies by the likes of world leaders such as Donald Trump and Xi Jinping has taken the world by storm. Heavy economies of the world spindle in the hands of such leaders whose ideas of their pre-modern countries get in the way of conducting free and fair trade when it comes to association with other countries. China-US trade war has been the highlight of newspapers and economic magazines for the last two years starting September 2017. Trump has always felt threatened by the alleged usurpation of trade by rival economies and has an unparalleled agenda of securing the country’s interests before anyone. This is a move away from Obama’s presidency which put a stringent focus on making global political machinery more amicable for Americans and everyone alike. Always been deemed as a “developing” country, China’s economy today and over the last several years has seen an exchange of over US$ 2 billion worth of commodities daily to the United States. Trade deficits have never been higher and Trump has already thought of his moves before China delivers the ace. The ante has been set high enough for the EU and other Asian countries to retaliate with higher tariff rates. Political tension is intense and witness to all these shifting dynamics is the WTO, which is officially biased towards the US and quite evidently, the entire game is rigged. US has been constantly blocking requests to fill in the three out of seven seats vacant in the Appellate Body of the WTO, often called the supreme court of world trade.
Ayush Kukreja is a Research Intern at Centre for Public Policy Research, he can be reached at [email protected]
Views expressed by the author are personal and need not reflect or represent the views of Centre for Public Policy Research.