Showing 1 Results for: “tradewar�
     
International affairs

The Trade war between US and China creates a need of self-dependency on Global Production.Many of the Chinese neighbouring Countries including India takes a audacious action by reconstructing their own supply chain.The virus will accelarate a change that was a already driven by market forces as rising wages and costs in china will cause lower-value manufacturing.While the US trade network with china was diaphanous but recent virus situation create of omnious relations between them but increasing disparity between them will help US to create good economic strategy that will help to strenghten the relations with countries like India,Australia,New Zealand,Japan and South Korea.Many Companies in china have been adopting "China Plus One" manufacturing strategy to bring chinese production on its peak.China Plus One is creating a baffling situation for global manufacturers as chinese low cost production facilities to global producers.The US has three alternatives ahead. First, is to expand the scope of technology restrictions on China.Second, is to outcompete China by dramatically boosting US high-tech capabilities by pouring fresh investments into education, basic research and support sectors of the industrial setup as used to be the case in the Cold War.Third, is to continue to push China, using the existing weapons of tariffs and diplomacy, to modify the parts of its behaviour that the US finds unacceptable.The developments relating to deglobalisation and decoupling offer opportunities for India and New Delhi would be wise to pursue them. Notwithstanding the slogan of “Aatmnirbharta” (self-reliance) that has come in the wake of COVID-19, foreign direct investment and foreign trade remain the two key requirements to pull India out of the poverty trap.In the end, the biggest force diluting china's position in the global supply chain will likely be the long, slow evolution of global trade.


#china  #world  #tradewar  #us 

0
7
0