Essay Example on US-China Trade War: Top Leaders' Phone Call to Resume Negotiations

Introduction

The article was published by the Fox business news on 9th July 2019 by Joe Williams. In the article, Williams (2019) provides a summary of the current state of events between the US and China trade wars. He says that the top U.S. and Chinese held a telephone conversation that was supposed to be constructive for both countries with regards to their existing trade dispute. From the article, the US President Donald Trump echoed the possibility of resuming their trade negotiations with President Xi Jinping of China. The new negotiations come after both presidents agreed to withhold the imposition of any new tariffs at the G20 summit. However, the duty on Chinese products worth $250 billion in the United States still remain. However, while at the meeting in Japan, Trump said that he would reverse his initial decision to block the U.S. firms from selling the Huawei Technologies Co. (a Chinese telecom giant).

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The article highlights the concepts and role that negotiations play in handling trade disputes among nations. In the end, both countries in dispute suffer considerable losses that may slur their economic advancement.

Fed, Pressed by Trump to Cut Rates, Faces Fire No Matter What It Does

The article was published by The New York Times on 9th July 2019 by Jeanna Smialek. According to Smialek (2019), the Fed is not going to have an easy time on their meeting this month given that the officials are still undecided on when or whether to cut the interest rates. While President Trump has been jawboning the Fed's officials to cut the rates and calling the central bank America's "most difficult problem" via his Twitter platform, Mr. Jerome Powell (The Fed's chair) and his colleagues gave it a deaf ear saying that they don't depend on politics when making such decisions. However, they are concerned that if they reduce the interest rates as expected by the market, some section of the public may view it as a sign of bowing to pressure with the existing job gains and economic growth. On the other hand, if they stay put, they'll deliver an unwelcome outcome to the markets and are likely to incur the wrath of the White House.

This article highlights the vital role played by Fed reserve and the interest rates in controlling the economy, i.e., cutting the rates would hinge on inflation data and cause prices to fall to levels that may harm the economy in a recession. Moreover, deflation would also not be welcomed as it would encourage customers to hold off on their purchases with a clear indication that they will have a lower value in the future.

Apple will make its new Mac Pro in China, not in the U.S.

The article was published by Cnbcnews.com on 28th June 2019 by Josh Lipton. According to Lipton (2019), Apple will assemble its new Mac Pro models in China, where its initial models were also assembled. This would mean a shift in production from the U.S. to China. The shift in the assembly of the products form the U.S. to China would help to reduce the costs of production among others. However, due to the current trade wars between the U.S. and China, the company would also shift its production to another county other than the U.S. and China. This may include shifting from the Shanghai factory, where the products were to be assembled to its other suppliers in Asia.

While such moves may be beneficial to the company in terms of lowering its operational costs, it affects the parent country, in this case, the U.S. as it denies the local citizens jobs, thereby slowing down the economic growth and development of their own country while improving the economy of the outsourced country.

References

Lipton, J. (2019). Apple will make its new Mac Pro in China, not in the U.S. NBC News. Retrieved from https://www.nbcnews.com/business/business-news/apple-will-make-its-new-mac-pro-china-not-u-n1024551

Smialek, J. (2019). Fed, Pressed by Trump to Cut Rates, Faces Fire No Matter What It Does. (2019). Nytimes.com. Retrieved from https://www.nytimes.com/2019/07/09/business/fed-reserve-jerome-powell-trump.html

Williams, J. (2010). The top US, Chinese trade officials have 'constructive' talk on holding a face-to-face meeting. Fox Business. Retrieved from https://www.foxbusiness.com/economy/us-china-seek-to-restart-trade-negotiations