Road to 5**﹕Trade War
【明報專訊】◆Source A
Source: a cartoon by 尊子 published in Ming Pao on 2018.04.11
◆Source B
In March 2018 US president Donald Trump announced that he would impose a tariff on US$60 billion's worth of Chinese goods. The Commerce Department of China subsequently levied a tariff of 15 to 25 percent on 128 types of US goods, which included fresh fruit, nuts and wines as a countermeasure.
In 2017 trade between China and the US was worth 3.95 trillion yuan, an increase of 15.2 percent on the previous year. China's export to the US was 2.91 trillion yuan, an increase of 14.5 percent. The US's export to China also increased by 17.3 percent to 1.04 trillion yuan. China had a trade surplus of 1.87 trillion yuan with the US.
Donald Trump had repeatedly vowed to end the “one-sided trade”. He mentioned China's hegemony in international trade by name, saying that the trade between China and the US was not fair and only benefited one side.
According to a report published by the Chinese Commerce Department in 2017, China's profit from reprocessing trade was insignificant compared with the US's profit from the design, supply of and sales of its products.
Source: Ming Pao
■Questions and answering guidelines
1. How does the trade war affect people's quality of life?
◆Increase in the costs of imports﹕
In a trade war, tariffs on some of the goods imported from both regions increase. This makes imported goods more expensive and less competitive. While local goods are protected, the rise in the costs of imported goods increases the expenditure of the people, thus placing a heavier burden on them and affecting their quality of life.
◆Fewer goods to choose from﹕
A trade war might stop some goods from being imported, which limits people's choice and affects their quality of life.
◆Protection of local workers﹕
A trade war reduces the competitiveness of imported goods and helps local industries develop. People working in these industries might enjoy higher rates of remuneration.
2. Should the US government impose tariffs on Chinese imports? Give one reason for the imposition of tariffs and one reason against it.
◆Reason for the imposition of tariffs﹕
The US has long had a trade deficit with China, which has been causing a steady outflow of capital. This has put local industries at a disadvantage. By imposing tariffs on Chinese products, the impacts of Chinese goods on US markets can be reduced, and the development of local industries can be protected.
◆Reason against the imposition of tariffs﹕
If the US government imposes a tariff on Chinese goods, China will no doubt retaliate. When China stops buying US goods or increases tariffs on them, the sales of US products will be impacted. This will in turn affect US consumers and enterprises. Furthermore, jobs are created when China trades with the US. The imposition of tariffs might hurt the employment market of the US.
Text: 劉俊偉, Liberal Arts teacher at PLK Yao Ling Sun College
Translation: Terence Yip
[通通識 第556期]
