Membership Area
e-mail
password
Forgot password?
To register place your 1st order
discount
All our papers are  WRITTEN FROM SCRATCH
All our papers are
WRITTEN FROM SCRATCH
We do not compromise the quality of the papers delivered. At SuperbEssay.com, you can trust our refund policy. If you prove that a low quality paper has been delivered, you get your money back!
qualyti
100% Quality guarantee
TESTIMONIALS
Do you want some real proof that we can cope with your essay? The customers' reviews about our services are the most substantial evidence of our writing quality. Why don't you have a look at our testimonials and see why people come back to our website every semester?
people
100% Quality guarantee
4 SIMPLE STEPS OF THE PROCESS
All you need to do is choose the type of your future paper, set the deadline, provide us with all the necessary details regarding your paper, wait a bit, and download the final product created by our professionals.
people2
3 main reasons why you should
CHOOSE OUR COMPANY
  • Affordable prices.
  • Quality papers.
  • On time delivery.
100% Quality guarantee
DISCOUNTS
Superbessay.com offers 2 kinds of discount programs to customers. The first type is for the first-time customers. It allows them to save up to 15% on the first order. The second one is a fidelity program for our returning clients. It is possible to get lifetime discounts of 5%, 10%, and 15% off the original price.
100% Quality guarantee
YOUR DEMO ACCOUNT
An attractive option, which allows you to always view your demo account, is another thing which proves professionalism of our writing service. It will help you evaluate our company's performance during the working process.
← General MotorsThe Deinstitutionalization of American Marriage →

The Effects of Tariffs on Chinese Imports

Buy Custom The Effects of Tariffs on Chinese Imports Essay

In the article “Eye on China and United States”, Milad Mahyari and Minoo Alemi evaluate the economic effects of imposing tariffs on Chinese imports by the US. The authors allege that the US strives to avoid inflation by forcing China to agree to an increase in the exchange rate. Since China has rejected the agreement, the US is imposing tariffs on Chinese imports like tires and steel. Consequently, China has begun imposing tariffs on poultry imports from the US. China used to manipulate its currency in a way that made it cheaper to sell its products and expensive to sell US products. This made the US to lose about $1.5 billion thus increasing the rate of unemployment. Although the US is trying to strengthen its growth power, imposing tariffs could result into worldwide trade war.

Mahyari & Alemi (2011) assert that placing tariffs on Chinese products is a retaliatory exercise because it devalues the Chinese currency. Although most Americans supported this idea, the authors allege that they did not understand its consequences. Over the years, China and the US have been trading partners: China provided the US with imports while the US invested in China. Economic conflicts between the two countries began in 2005. The US did not like the fact that China had maintained an exchange rate of 8.28 for many years. As a result it proposed a 27.5% tariff on all products from China but the Chinese government rejected the move in fear of recession.

Type of assignment Writer level Title of your paper Pages
Spacing Urgency Currency Total price
 

Investment is a key factor in the China-US relationship. China’s major investment in the US is in foreign direct investment and Holdings of US securities. On the other hand, the US Treasury securities are in China. The conflict between the two countries has made it difficult to transact business and the US is likely to be the major loser. Unfortunately, the drama that began in 2005 has heated up instead of being solved.

The authors believe that the main cause of conflict is the increased rate of unemployment in the US. The US expects that the tariffs will improve the US economy and create more jobs. The importation of Chinese tires has fallen by 30%. However, the statistics by the labor of theory show that the tire-making job in the US has fallen by 10%. While Chinese products are cheap in the global market, the US should understand that there are other countries like Thailand and Vietnam which have cheap products too. Imposing tariffs on China would therefore not stop people from buying tires from such countries. Mahyari & Alemi (2011) suggest that the US needs China more than China needs it because China holds the largest US debt of $ 847 billion.

It is very clear that China is keen to maintain the low value of the Yuan in order to increase its value of exports and imports. At the G20 meeting, China and Germany were encouraged to alter their exchange rate so as to encourage domestic spending (Sharpe, 2012). According to the economic theory, the Chinese consumers should be allowed to buy products from America. The economic principle of people’s choice suggests that people choose alternatives with the best benefit at the lowest cost. The US on the other hand should spend and invest more and regulate on their borrowing. Mahyari & Alemi (2011) predict that the US would lose in the economic war with China because China is a stable and wealthy country that does business all over the world. It would therefore be risky for the US to lose China as a business partner.

Buy Custom The Effects of Tariffs on Chinese Imports Essay

Related essays

  1. The Deinstitutionalization of American Marriage
  2. Building Bridges Through Translation
  3. General Motors
  4. The Key Challenges Presented by Population Ageing
logo