The Effect of Trading Conflicts on the Asian Economies.

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Senior government officials from many countries around the globe have engaged in various meetings meant to make deals that facilitate international trade for mutual benefits. Currently, the Asian factories feel pinch from escalating trade conflict with the United States. The most affected sector is the manufacturing industry.
The first indication of the adverse effects of the problem is the low export orders next month. Considering that China and the United States are some of the largest economies in the world, some analysts have warned that if the conflict continues, the global economic growth rate will decrease.
Asian countries such as China, Japan, and South Korea are some of the largest export destinations for the local products. However, recent statistics from the purchasing departments of various firms are worrying. China’s economy was hit hard as it recorded the lowest rate as compared to the other months in more than a year. The amount of orders in China have reduced consistently for the last five months. The export orders from other Asian countries such as Japan and South Korea also declined. China seems to be the most affected by the trade conflicts than the United States.
According to a renowned economist in Japan, Yoshiki Shinke, the growth of the Asian economies highly depends on the resilience of China’s from the current stalemate. When President Donald Trump was campaigning, he always emphasized that America’s interests would be his priority if he won the presidential election. Even after he took charge of the government affairs, he has been relentless to achieve that and the confidence of many nations around the world have been affected negatively. The value of the stocks in the Asian countries have also declined since President Trump was sworn in.
The trade conflicts between China and the United States are mainly as a result of the tariffs for the bilateral trade. According to economists, the number of global business investments are likely to be affected. The U.S. president has insisted that his government would come up with new trade tariffs. The tariffs would increase significantly as China’s exports with an estimated value of $50 billion to the country have already been subjected to other tariffs. One of the initiatives that President Trump implemented was tax cuts. Some economists argued that the move would derail the country’s growth rate. However, recent statistics have shown a positive trend.

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