The US-China stand-off could adversely affect third countries as well. America’s protectionism though focused on China, is unlikely to leave other countries untouched, since the US runs trade and current account deficits with many nations.
In December 2018, the US President Donald Trump and his Chinese counterpart Xi Jinping decided to start negotiations and not escalate the trade war in the near future. Initially it appeared that talks were going well, but in a sudden turn the US alleged that the Chinese had gone back on their promises. This triggered the current aggressive second phase of the trade war that has gone far beyond tariffs.
We discuss US-China trade war in this episode of Money Matters with expert inputs from professor Ranajoy Bhattacharyya of IIFT Kolkata and professor Yunhua Liu of Renmin University of China.