Consider China as Churan, who had been trying to get trumped till yesterday, how did they become so helpless? Understand the story inside

New Delhi: Big news has come in the ongoing tussle over trade between the US and China. An agreement has been reached after several days of talks in both countries. This agreement may affect the economy of the whole world. US Finance Minister Scott Besant said after a conversation in Geneva that there has been good progress between the US and China regarding trade. There is an agreement on Sunday. The situation deteriorated since the tariff policy of President Donald Trump between the US and China. The US imposed 145% tax on goods coming from China. In response, China imposed 125% tax on goods coming from the US. Not only this, China also stopped the export of ‘rare minerals’ to the US. Due to this, trade between the two countries was almost closed. Now it seems that America has decided to bow down first. The opinion of this is that it is wrong for Trump to guess about China. Considering this China as Churan, he was looking at his eyes till a few months ago. Trump also tries to understand how so helpless in front of China.

Goldman Sachs analysts said last week that inflation would increase to 4% by the end of this year due to the Trump Trade War. America was suffering many damage from this tax policy. The impact of Trump’s trade war was visible, as there was a huge decrease in goods coming from China at American ports and airports. Big shopkeepers like Walmart and Target also warned that the goods in the shops would be reduced and prices would increase. Its effect was also visible in China, as the production in factories there was reduced.

Mushkil position for America

Work in China’s factories in April decreased the fastest in 16 months. Therefore, China also wanted to end this situation. It is true that China has captured the world market in wrong ways and it is necessary to challenge its business. However, China has shown more strength in trade with the US.

Chinese President Xi Jinping does not have to face early election like Trump. Opposition to their economic policies in China is also less. The government has taken several measures to promote the economy. The Chinese government can take such measures even further.

The situation is difficult for America. The government does not have much option, except that the tax exempted by Trump in his previous term should be carried forward. In addition, the Trump government may have a conflict with the US Federal Reserve to reduce interest rates. Regarding this, Federal Reserve Chairman Jerome Powell has said that this will not happen early.

China will be in better position

According to Financial Times Chief Economic Commentator Martin Wolf, China will remain in a better position in the trade war between the US and China. He told the Indian Express, ‘Americans will have to show a lot of cleverness to avoid China in this trade war. China has a lot of options. On the other hand, America is politically weak. The economy looks a bit weak. The markets are looking weak. This trade war will cause great damage to the American business. This will weaken the supply chain in the US and can break many. This can cause major damage. ‘

America’s splash regarding the agreement can be understood that Trump had said before the conversation that he is ready to reduce the tax rate on China by 80%. He wrote on social media that this ‘Scott B.’ Depending on, because the Treasury secretaries were going to the Besant Geneva for conversation. The White House later said that China would also have to give some concessions.

CNN economists say that the 50% tax rate will be ‘decisive’, which will make the trade between the two countries somewhat normal. One reason for concern for the US is that prices have started increasing in the US due to less goods coming from China and high costs on imports.