Tariff War between America-China, Xi Jinping opens five 'counter fronts'

International News: The ongoing trade war between the US and China is now at a decisive turn. Tariff War, launched by former US President Donald Trump, has made the relationship between the two countries tense. The open battle between Trump and Chinese President Xi Jinping has now sparked-and the weapon of this fight is heavy tax on import-export i.e. tariff.

The US has imposed a 145 per cent tariff on products coming from China, while China has also imposed tax up to 125 per cent in response. In such a situation, now the question is, whose strategy is proving more effective?

Xi Jinping is on a trip to Vietnam, Malaysia and Cambodia these days. Trump alleges that Jinping is looking for new tricks to harm America from these tours. At the same time, China has taken many big steps to pressurize the US.

Five big weapons of China in trade war

• Ban on rare meaning metals: These metals are extremely important in areas such as electronics, defense, vehicles, semiconductors and aerospace. 90% of them come from China worldwide. This is a major setback for America because it does not have any easy option for them.
• Alliances with neighboring countries: Xi Jinping has strengthened business partnership with Vietnam, Malaysia and Cambodia. These countries already have billions of dollars of Chinese investment. Analysts believe that Jinping wants to convey a message to the US that China is a stable and reliable business partner.
• American Treasury Bills Making weapons: China has about 760 billion $ 760 billion Treasury Bills. If China starts selling them in the market, then the value of the US dollar may fall and the financial markets can be turned up. This can prove to be an economic tactic to pressurize America.
• Star on US agricultural exports: China is a major importer of agricultural products like poultry and soybean from the US. Beijing has canceled the approval of some large American exporters. This step can hurt Trump's political stronghold, as these products come from states that voted for them.
• Screws on American tech companies: The production of Apple, Tesla and other American tech companies is connected to China. Increased tariffs on China may affect the profits of these companies. It is reported that Beijing can put regulatory pressure on these companies and create indirect pressure on the Trump administration.

Is the world moving towards new economic war?

While Trump is calling it "protecting American interests", China is calling it "politics of unfair pressure". But there is no doubt that the effect of this confrontation will not be limited to America-China only-its impact is sure to fall on the global supply chain, markets and investment.

The next few months will decide the direction of this economic war. It will be seen to see which strategy proves effective-the aggression or strategic cleverness of the trump.