Technology slow down in china; effects of US-china trade war
Technology slowdown in CHINA; as a result of US – CHINA trade war news
For china, the major impact of the ongoing trade war between US and CHINA is the slowdown of acquisitions in technology. This is the biggest disturbing impact coming from the US – CHINA trade war news. This is as a result of bigger restrictions and also higher tariffs on Chinese investment.
In an article titled ‘US – CHINA ECONOMIC FRICTION ; TECHNOLOGY MORE THAN TRADE WAR’ , it was reported in the article that China recorded little impact in their economy growth. But have more worry in their technology growth been a country that highly depend on other nations for technology growth.
Currently, increase in tariffs and restrictions by the US on China, has made Chinese investment to go down on other foreign countries as it will limit their technology access overseas . This will go a long way in preventing them from obtaining foreign technology acquisitions and using them either at home or abroad.
Global value chains [GVCs] is now been removed from china, as it will be located to where there is lower tariffs even if it’s a place that is not lesser efficient to install capital. This may cause more harm than good to china growth as it will gradually distract attention from china to other nations that has lover tariffs.
This ongoing trade war between US and CHINA can make china to be less exposed as their wont be much access for them to learn from other nations especially in the case of global value chains (GVOs).
It’s no doubt that china hugely depends on other nations for some technologies like semiconductors, and with the ongoing US – CHINA trade war news coming, it may hinder their quests to acquire the needed technologies that they don’t have.
China foreign access restrictions is not likely to affect their growth or economy balance in some years to come. But this will affect them by reducing their economy growth speed and also economy limitations. It will further to make it harder for china to stabilize its debt-to-GDP (gross domestic product).
In S&P Global ratings,
it said that china can manage the short term impact of the US –CHINA trade war in just a given period of time. Combining higher domestic demand and average exchange rate depreciation aids in removing the decline in lower exports.
China still depends on foreign technology to improve production and regulate per capital growth at close to the current pace over the average term, china may decide to be on liberalism and increase in openness and.
Lastly because of the trade war news coming up every day. it may be difficult to end the trade war as the US and its trading allies will not be easily satisfied by their opponent. it is becoming a reality that the trade war may not end soon and will create higher levels of trade war and investment tensions which will last for a bit longer if the dream finally becomes the reality .
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