The United States of America and China, world’s biggest trading partners are on a trade war. This provides India an opportunity to market their goods all over the world. President Donald Trump said that China is violating the Free- trade pact signed by China withWorld Trade Organization by hiking tariff over the U.S goods. To oppose the shadow war policy the U.S also increased the tariff over Chinese products. China is focusing on the transformation of their economy through “Made in China 2025” which promotes, guides and support domestic industries. Economists and industrialists are disturbed on the trade war and this effect on the trade and subsequent increase in the prices of the commodity.The Chinese government spends a large amount on industries like telecom and other technologies to compete in the global market.
The opportunities during the trade war make Indian products such as cotton, oilseed meals, soya-meal, mustard, and maize gives a market entry. According to the economic experts now India is the second largest country in the exportation of cotton after the U.S. This will be a positive influence on the development of the Indian cotton industry. There is no import tariff for the Indian cotton in China as such it will help to leverage our position in the Chinese market.
The trade war indirectly influences the Indian economy by providing a market to other Indian products which mainly used in the livestock and poultry industry in China. The import of frozen buffalo will also get a chance to bounce the markets in China. Yet the trade war will create a mutual destruction to both China and the U.S. But there could be a retaliation in the domestic and international stand on monopolies privileges.
The U.S goods export($169.8 bn) and import($478.8 bn) with China is estimated $ 648 billion in 2016. China made $ 375 billion goods trade surplus with the U.S in 2017. The latest dispute with the United States strikes the technology industry with a vital economic future. This might be a great threat to China and a set back to the global economic recovery.