The balanced trading agreements and economically productive relationships among the most powerful countries have kept the world a better and safer place. The optimism towards healthy international relations among these nations have so far, benefited the markets and the global economy – and what happens when two economic giants would come to a massive trade disagreement will not only send ripples but huge waves that have the power to wipe out everything on their way.
The exact scenario recently made headlines when two economically dominant nations, China and the United States, started waging what experts tagged as an on-going “trade war.” Many suggest this event has the potential to reshape the two countries’ economy and the global markets as a whole.
Commonly known as the US-Chinese Relations, the trade relationship between the United States and China is a powerful yet complicated one. The former holds the title as having the world’s largest economy while the latter ranks second. Although their current relationship has been riddled with conflicts, and the current threats of the present trade war, it has proven to be a strong and stable one ever since it began in 1949.
Today, the rough yet productive trade relationship between U.S. and China is actually supporting over 2.6 million jobs in American, benefiting several industries in the country. In 2015, records show that Chinese consumption and buying power brought in over $160 million to the country’s exports and their economic output.
China, on the other hand, became the third largest destination of goods and services from the U.S. (as of 2000 ranking), directly and indirectly contributing growth to the Chinese economy.