US-CHINA TRADE WAR

China is fighting back against US tariffs and export controls by supporting its own industries and encouraging innovation. It wants to rely less on US technology and grow its own high-tech companies. China is also looking for new trade partners through its Belt and Road projects to make up for lost business with the US. Despite these efforts, China’s economic growth is slowing down because of the trade war. Experts expect China’s growth to be lower than before, which affects jobs and incomes. The trade conflict is changing how countries buy and sell goods and will continue to influence the global economy for years.

  China’s Belt and Road Initiative (BRI) builds roads, ports, and railways in many countries to increase its global influence. Meanwhile, the US is trying to limit China’s power by using tariffs and export controls and by encouraging other countries to work with the US instead. These competing strategies affect global trade and politics. The stock markets react quickly to news about tariffs, often dropping when tensions rise. Investors worry that the trade fight will hurt company profits and slow down the world economy. The race between China’s BRI and US policies will shape how countries trade and invest in the future.

  The US has put very high tariffs on many Chinese products to protect its own industries. These tariffs make goods more expensive for American shoppers and businesses, costing each household over $1,200 a year. The goal is to reduce dependence on China by encouraging companies to move their factories to other countries like Vietnam, Mexico, and India. This shift is called "trade diversion." While this helps some countries, it also causes problems like higher prices and disrupted supply chains worldwide. China has responded by adding its own tariffs, making trade between the two countries even harder. This ongoing conflict affects not just the US and China but the whole global economy.