Trade War Inadvertently Helps China Build International Influence
(Photo: REUTERS/Brian Snyder)
The whole world is currently witnessing the top two economies clash by imposing massive tariffs against each other's goods. While some might say that this is bad for the economies of both China and the United States, some observers have noted that while this is true, China is gaining grounds in terms of international influence using the backdrop of the bitter trade war.
Many market and economic experts have noted China to be an ascending superpower. The country has been riding its massive economic boom fueled by the unprecedented rise of its industrial and technological infrastructure. Additionally, China's rising middle class is also a massive untapped market which many experts have pegged as one of the many reasons for the country's self-sufficiency.
On the other hand, the United States is starting to show cracks in its economic fortress. Based on the latest data, the country's infrastructure, educational system, and international influence have been in steep decline over the past few years.
The trade war between the two superpowers was initiated when U.S. President Donald Trump imposed billions worth of tariffs against various Chinese goods. Government insiders have said that this was President Trump's strategy to curb the extraordinary rise of China's economic might and influence not only in the Asia Pacific but in the whole international stage as well.
The trade war has hurt not only the economies of both China and the U.S. but also of smaller economies that depend on the two superpowers for trade. As a result, uncontrolled inflation has been reported in several countries.
Washington's disruptive foreign policy has caused some of its allies to realign their policies. While some of these allies have not directly realigned their country towards China, experts have noted that this will be the eminent result.
While the U.S. continues to antagonize some of the world's top economies, China has been busy investing in emerging markets especially those in Africa. China's "Belt and Road Initiative" is seen by many as a shrewd strategy to dominate global trade and grab it away from Western powers, especially the United States. Additionally, China has been busy negotiating deals with its northern neighbor Russia.
Hailed as the "New Silk Road", the "Belt and Road Initiative" spans several continents. Once complete, this massive undertaking will connect China to the rest of the world via ports, roads, and railroads. This will, in essence, turn China into the world's biggest trade and economic hub.