Assessment item 1 back to top Implications of US-China trade wars for Australia Value: 20% Due Date: 01-Apr-2019 Return Date: 24-Apr-2019 Length: 1500 Submission method options: Alternative submission...

US China Trade War- A troubled future
Executive Summary
This paper aims at studying the implications of the US-China trade war at its outset. The current trade war between the two import-export giants has seen a worsening trend. The KPMG Australia report demonstrates that the trade war has serious implications and is projected to cause substantial loss to Australia as well as the world community.
The paper also studies the current situation of the US-China trade relations and observes the possible outcome among the three scenarios proposed by KPMG. It also discusses the impact of the possible outcome.
Table of Contents
Title Page………………………………………………………………………….……………1
Executive Summary……………………………………………………………………………2
Table of Contents………………………………………………………………………………3
Introduction…………………………………………………………………………………….4
Summary of key findings of the KPMG report and media coverage……………………….4
KPMG Australia report summary…………………………………………………………….5
Assessment of subsequent developments in the US-China trade disagreements…………...5
Developments in the context of the three scenarios modelled by KPMG in its report…….5
First scenario……………………………………………………………………………………..6
Second scenario………………………………………………………………………………….6
Third scenario……………………………………………………………………………………6
Impact on the political / legal, economic, socio-cultural / ethical, technology, environmental section …………………………………………………………………………………………...6
Conclusion………………………………………………………………………………………7
References………………………………………………………………………………………8
US China Trade War- A troubled future
Introduction
Globalisation has made the world one huge global market. Today the effects of government policies regarding their trade relation with other countries are not restricted to each other but to all the countries they are involved with (Nistor, 2007). So trade in the global context, especially by the stronger and bigger economies like the US and China can have lasting impact on countries like Australia that are involved in trade with both the countries (Crowe, 2018). This can clearly be seen in the effects of the recent trade war between US and China, the effects of which can be clearly seen and felt all over the world.
This report aims at discussing the short and long term effects of the trade war between US and China on Australia and the global community. It discusses the alarming impact that the current situation has had in the present and the possible predictions for the future. It seeks to warn and suggest countries to brace for worst times, should the trade situation between the two countries worsen.
Globalisation refers to the openness of trade between various countries. It implies that countries have opened their economies to export goods and services from outside as well as to receive these from outside. Globalisation has enabled greater competition and greater returns on products resulting from international trades. International trade refers to the exchange of goods and services in the global community. In order to regulate international trade, the WTO has certain guidelines in place. These guidelines regulate the application of tariffs and duties on goods beyond rational levels.
In its trade war against China, US has undermined these laws and imposed tariffs on Chinese goods under the pretext of national interest and Chinese deception (Lau, 2018). As a retaliation measure, China slapped unreasonable tariffs on US products and threatens to increase them further (Swanson, 2018).
The impact of the war has been discussed in detail in the report published by KPMG that shows some very interesting predictions and conclusions in both the...