Concerning trends in the China-US Trade relationships have entirely affected both countries. Trades between them have been affected, the supply chain has been disturbed because of the American efforts to separate China economically. This article highlights the effects of the difficulties faced by common people who are living on both sides of the Pacific.
Shrinking Bilateral Trade: A Result of “Decoupling” Agenda
In the month of May we saw a drastic drop in China’s exports to the United States, which Washington’s ongoing efforts to do so are to blame for. Two way trade fell by 5.5 percent in the first five months of the year with shipments to the United States falling by 8.5 percent.
Mounting Pressure on Chinese Exporters
The pressure on Chinese exporters grow as we witness the decline in the trade with the United States. The China’s trade surplus with the US trade decreased by 14.5 percent in between the month of January and May. This highlighted that the American consumers are facing difficulties when acquiring goods in the face of a worsening inflation issue.
Impact on American Consumers: Rising Inflation and Reduced Import Demand
Because of the tension between the economy of United States and China, American consumers are suffering a lot. By rising inflation rates their purchasing power is diminished which highlights the reduction of need for imports. For ten straight months China’s exports to the US have fallen. It caused a 12.2 percent dip in May compared to the same month last year.
Deteriorating Trade Relationship: Struggles of Ordinary Americans
The deteriorating US-China economic relations focuses on the harsh realities that afflict the regular Americans. When the interest rates were increased by quarter point to fight inflation, we witnessed that the US Federal Reserve accidently hurt American consumers. This action has put a strain on American firm, workers, and the economy.
