🇨🇳 What's the endgame in the US-China trade war? | Counting the Cost (Full)

The ongoing and protracted tit-for-tat trade dispute between China and the United States has intensified this week - so much so that it prompted a warning from the Organisation for Economic Cooperation and Development (OECD).

The Paris-based think-tank says the world's economy can't keep growing if things don't improve on the trade front.

China has now slapped tariffs on nearly $6bn-worth of US goods in retaliation for the latest round of US tariffs on $200bn-worth of Chinese products.

The increased tensions will likely scuttle the renewal of trade talks between Beijing and Washington, reports Al Jazeera's Scott Heidler from Beijing. While about 5,000 Chinese products, including household goods from vacuum cleaners to bikes, will be targeted, many US businesses are expected to suffer as well.

"Just before the tariffs were announced in Washington, the Chinese commerce secretary said US protectionism won't only impact the two countries involved in the trade war, but it will hurt the global economy as well," says Heidler.

Beyond US protectionism, "I don't think the goal has been demonstrated or articulated well by the [US] president," explains Greg Swenson, the founding partner of London-based Brigg Macadam, a merchant banking house for emerging and frontier markets.

"What he (Trump) seems to dwell on is the trade deficit and he picks these arbitrary numbers or targets for trade deficit reduction, which is a mistake. What he should focus on is that China is violating all kinds of free-market and open-market policies and rules. The US has taken China to the WTO 16 times in the last couple of years, and they've won all 16 times, but that doesn't seem to be fixing the major problems, which are theft of IP and the complete disregard for free-market principles."

Swenson says that Trump has "somewhat lost the narrative or the messaging battle because it looks like the US is provoking a trade war, when, in fact, he's trying to fix something that needs to be fixed."

"I don't think these tariffs will stay in place because they're self-defeating. It's not really going to hurt the American consumer or the American economy. In many ways, the president's playing with the house's money; the economy is kicking on all cylinders."

"The Chinese have a lot more to lose if they are in a trade war," Swenson says, explaining that Americans are importing $500bn-worth of goods from China, whereas the Chinese are only importing $130bn from the US. "So, the US has a much better ability to punish China and that's obvious."

Also on this episode of Counting the Cost:

India economy: India is often referred to as the "world's fastest-growing large economy" but the Indian rupee is now the worst-performing currency in Asia, despite government efforts to turn the tide. Non-essential import restrictions announced this week have left businesses unhappy and there are fears of protectionist policies being put in place. Gregor Irwan, chief economist at Global Counsel, offers his take.

Afghan ice cream: Since the United States invaded Afghanistan in 2001, one song has echoed across Kabul's neighbourhoods. "Happy Birthday" blasts from the speakers of hundreds of ice cream carts across the capital, but the recent surge in violence before the upcoming elections has caused their profits to plummet, as Charlotte Bellis reports from Kabul.

Australia strawberries: A sabotage scare is threatening to hurt Australia's strawberry growers. They've warned about an overreaction after several people found sewing needles inside the fresh fruit. While some reports turned out to be hoaxes, the devastating effect on the industry is the same, as Andrew Thomas reports from Sydney.

SpaceX passenger: There is now a face and a name for the man who hopes to become the first paying passenger to fly to the moon. US company SpaceX has said Yusaku Maezawa, a Japanese billionaire, is its first customer. The 42-year-old online retailer said it has been his lifelong dream to go to space, as Victoria Gatenby reports.

Qatar-Japan electric cars: Qatar and Japan are teaming up to manufacture electric cars. The new $9bn project involves building several factories from scratch and is supposed to be up and running by 2024. The first car to roll off the assembly line will be called 'Katara', and will be launched in conjunction with the FIFA World Cup in 2022. The project is backed by ARM of Japan.

More from Counting the Cost on:

[coryplum]

Many OECD countries became rich depending on their invasions and colonialism history to others decades ago. In the peace period, they made WTO to make sure they have advantages than others, guess what? Now some countries without invasion and colonialism to others, only hard working, then made a huge economic miracle following WTO rules, these rich countries felt offense. They didn't think what's wrong with themselves, just shouting to others and wanna make a new system that make sure they continue have advantages. What a ludicrous stuff!

[ravenqable]

I don't call it steal, China is a fast learner.

[fiucikmiselfo]

The poorest Americans will pay for this at Walmart. Good thinking.

[armstrongchan]

China will help Africa to develope and boost the economic there to creat new prospectives and new demands from Africa, USA's market is NO longer China's prime market

[sdfssdfsdfsdf]

China will be a hero against such a arrogant superpower USA. Dont back off Mr China, because Japan surrendered the trade war in 1980 doesn't mean that u must do the same ! Because u r brave fighting and u will gain more respect s from the rest of the world. Don't follow the double surrender in defeat as the Japanese did.

[eddieloke]

How can someone who steal technology can be way ahead of the creator of the technology ?

[timurkim]

I am determined not to buy any US products.

[maxwang]

This will only bleed the ordinary people dry.

[hzhang]

a developed nation has so much more advantage on the developing nation and they talk about playing fair? you like to talk about morality then help the developing nations by transferring the know how instead of dumping loads of cheaply produced goods killing local businesses and livelihood. when the west dumps stuff it is good. when the others dump it is unfair. when the west put tariffs it is to protect local business. when others put tariffs it is unfair. basically when a developing nations is reaching the point beyond being easily taken advantage off the developed ones gets mad. just say what you mean and stop adding morality and ideology into the mix. you want to keep being number one, you want to keep the majority of the people poor. you want to have the advantage.

human civilizations have been stealing technology since prehistory. why research the same tech twice? this is not about democracy vs plutocracy, not capitalism vs communism. this is about the rich minority trying to acquire all the wealth.

[arunkottolli]

These tariffs are actually consumption tax on US citizens! It will help the world by lowering consumption by USA.

[akltom]

chinese can live without made in usa, it's expensive anyway, even i wanna spend that much money on something, i choose made in europe. how about americans? can you afford everything made in usa?

[GOGADA]

US should impose more tariffs on China and give incentives to local products

[dalegmusic]

Be peaceful America, you are rich enough! How much more do you want? be content. So what if you are #1 or 3, that's not too bad. What's bad is if you can't take good care of your own ordinary US citizens at home. Allow other countries to be successful too!

[catswimming]

In history, from time to time, the effort of a society to hold back a new and upcoming economy has been something they regret in days ahead.

[thinkandchangethewayyouthi]

Chiness people are used to the austerity not Americans.
China is been investing in africa to have exclusivity of some future important raw materials in return

[desireesandovalwilliams]

I prefer overseas news because they dont leave nothing out. And less Hollywood

[voranartsirisubsoontorn]

Positioning change into the right direction is a bless. The whole world just have to adjust and take opportunities that surely will come around.

[vinm]

Endgame :-financial gravity will catch up with China's
exponentially increasing private debt.
End of story.

[IanMcGarrett]

I am by no means an expert on international trade but this guy seemed to be talking out of both sides of his mouth so I went to the Brigg Macadam website where they state: "We have particular depth in Africa, where Brigg Macadam has worked for European and African clients in Angola, Cape Verde, the Democratic Republic of Congo, Egypt, Ghana, Kenya, Mozambique, Namibia, Nigeria, the Republic of Congo, Senegal, South Africa, Tanzania and Zimbabwe." But they only have offices in London England and Perth Australia. And this guy, Greg Swenson, cites in his bio that "he spent over a decade at Lehman Brothers." Just as a reminder, Lehman's bankruptcy filing was the largest in history.

​

[ayanaashree]

It impacts the ordinary people who buy goods from Walmart and other shopping places. It does not effect politicians living in mansion.