What I read
In Asia stocks follow US shares up as trade war fears ease (2018). Asian economy including China and Japan, which is one of the most biggest economy in this continent, recovered from situation of trade war between China and USA as it show in stock index, for example, the Nikkei 225 index recovered by 1.7% to 21, 110.68 and Hang Seng index in china rose by 0.8% to 30,80 points. Regarding of announcement of US president ,Mr. Donald Trump, the USA will increase tariff goods from China because of intellectual property right problem in China. At first China responded by increasing tariff against US goods. However, the situation is eased by announcement of China president that he will negotiate with US and he doesn't want this problem occurring.
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My response
It is interesting news for me because nowadays both China and USA are the most biggest and powerful countries in the world. The conflict between both countries have affected to every country in the world. I felt this situation like real war , for example, World war 1 and 2, to be number one in the world but it change from real war to trading war.
The US policy against Chinese goods will has impact on Thailand for both direct way and indirect way. China is one of the most important export market in Thailand, so if the tariff occurred, it definitely has affected to our country especially the export sector. China will decrease production as a result export sector in Thailand especially steel industry might face serious problem. In addition, the USA might also use the tariff policy against other countries which include Thailand.
For intellectual right, it is known that China is the top list in the world which has Intellectual piracy. I am the one who do not agree with it but it might be other ways to solve the problem as this tariff war has bad effect on not only China and USA but also almost countries around the world.
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My question
Should US government increase tariff against Chinese goods ? Is it important to solve the problem about intellectual rights ?
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Reference
- Asia stocks follow US shares up as trade war fears ease. (2018, March 27). BBC News. Retrieved from http://www.bbc.com/news/business-43551384
Although I can understand the desire some people have to "protect" their national industries with tariffs and other anti-free trade policies, every economist knows that such policies are bad for the nation, except for the greedy groups being protected unfairly. The cost of Trump's tariffs on steel have to be paid for by the rest of the US economy, which will have lower production as a result. This is silly.
ReplyDeleteExactly the same is seen in Thailand's policy of not allowing Thai land to be bought and sold by non-Thais. It depresses the market, which harms the farmers and the poorest people in society so that the greedy rich people can continue to take unfair advantage of the poor farmers. Again, the entire economy except a small selfish group suffers because of the anti-foriegn prejudices.
To answer New's question: no, the US government should not increase tariffs against Chinese goods because that is bad for the US economy, which will contract as a result, causing less wealth to be available to the US people to share. Since the economic analysis of the benefits of free trade is not difficult, I wonder why so many people continue to foolishly support tariffs. The only reason I can think of is that they do not care about their nation's overall health and wealth, but care only about their own selfish wants.
I am not so sure this is a good idea for the US to increase tariff for Chinese products. Literally, I feel like Trump does not like Chinese people and so he has tried to do everything against China. Since he is American and Chinese people are everywhere even in America. He is afraid that America will be the Second China in my thought. For China, there might be a problem because the prices of Chinese goods are more expensive and maybe American people switch to buy products from other countries despite of the prices of Chinese is really cheap. However, American people have to spend more for the products so they have to think more and maybe scared to spend and it will lead to a slow growth in the US economy.
ReplyDeleteBoth of China and USA are the influenced economic country in our world. The conflict between this two country is the important issued which we should worry about. I afraid that it will be possible reason to make world war happen. However, I expect that this negotiation would be good.
ReplyDeleteI think US should not increase the tariffs because it will be the cause of a lot of problems. Also, it is really crucial to solve the intellectual rights.