By Admin 
US China Relations: There are signs of increasing tension once again between the world’s two largest economies, the United States and China. Beijing has given a clear warning that if the US moves towards imposing new tariffs by extending the review of the 2020 ‘Phase One’ trade agreement, it will take “all necessary measures” to protect its interests. Earlier, Washington had indicated that it may proceed with the investigation of compliance with this agreement.
In response to comments by US Trade Representative Jamieson Greer, the Ministry of Commerce of the People’s Republic of China said that despite the disruptions caused by the COVID-19 pandemic, China respected the Phase One agreement, followed intellectual property rules and opened markets in the financial and agricultural sectors.
China’s warning
The ministry alleged that the US tightened export controls, which affected two-way investment and harmed normal business activities. China also said that if the US imposes new tariffs on an investigation basis, Beijing will not hesitate to take retaliatory measures to protect its legitimate rights and economic interests.
This statement has come at a time when US President Donald Trump is proposed to visit Beijing. This is believed to be his first possible visit to China after 2017. Along with this, this development is happening in the background when the Supreme Court of the United States has invalidated some of Trump’s tariff measures.
Why can tension increase?
Analysts believe that if the tariff dispute between the two countries deepens again, widespread instability could be seen in global supply chains, commodity markets and equity markets. Earlier this year, tensions between the United States and China reached their peak when US President Donald Trump announced the imposition of comprehensive tariffs on many countries. These tariff steps also had an impact on global trade, supply chains and stock markets.
However, later through trade agreements and negotiations between the two countries, the situation normalized to some extent and the bitterness in mutual relations reduced. But now the discussion of re-investigation and possible new tariffs has increased uncertainty in global markets. International affairs experts believe that if the tariff war intensifies again, it could impact not only America and China but the entire global economy, especially emerging markets and export-based economies.
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