Essay Sample on US-China Trade War: No End in Sight

Introduction

Presently, there is an undisputed trade war regarding increasing tariffs between China and the United States. President Trump recently acknowledged payments by China on their tariffs but noted evasion of border taxes accounted for by US companies and clients to the US government. Currently, there are increased tariffs on approximately $200 billion of Chinese goods, which can be noted as 25% (US-China Trade War). Current measures do not predict any resolution but a worst-case-scenario as soon as tariffs are imposed on all US-China trade and businesses. There are threats to tax the remaining goods that are being imported by the US from China. The US-China trade war could impact Apple Company with the current situation about tariffs alongside limited conflict resolution.

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As the assistant to the head of Apple's production division of iPhones, I predict difficulties in investment due to unpredictable Gross Domestic Products of the two countries. Furthermore, the Apple Company has been affected in terms of revenues, considering that it should be amongst the firms paying border taxes for China's goods (Partington). China is the primary assemblage point of most of Apple's products (Guglielmo). Apple Company's supply chain will continually be affected hence; delaying its investment plans, and postponing most of its decisions. These could lead to further consequences, including slower economic growth for the country. Apple, as a main mobile phone producer in the US, will be the loser for as long as the trade war will exist even though the imposing of tariffs could protect the domestic industry. Even though the two countries are economic superpowers, I would suggest trade negotiations such as conflict transformation and structural prevention. Conflict transformation may lead to the two countries addressing the factors that contribute to the conflict, ensuring sustainable peace, and creating a favorable environment for investment. If conflict transformation does not work, structural prevention should work since it focuses more on long term measures that mitigate the factors contributing to the trade war.

A continued trade war between China and the US would affect Apple's company supply chain. The profits recorded by Apple can potentially fall, and it may fear to invest further and to associate China with its production of the iPhone. Nonetheless, conflict transformation and structural prevention could be some perfect conflict resolution strategies to address the trade war.

References

"US-China Trade War: UN Warns of 'Massive' Impact of Tariff Hike." BBC News, BBC, 5 Feb. 2019, www.bbc.com/news/business-47126114.

Guglielmo, Connie. "Apple's Supplier Labor Practices In China Scrutinized After Foxconn, Pegatron Reviews." Forbes Magazine, 2013.

Partington, Richard. "Trumps China Trade War Risks Damaging US Economy, Says OECD." The Guardian, Guardian News and Media, 21 May 2019, www.theguardian.com/business/2019/may/21/trump-china-trade-war-us-economy-oecd-tariff.