3 unexpected consequences of the US-China trade war

yuan

(Eric Prouzet, Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Emma Charlton, Senior Writer, Formative Content


Almost 10,000 kilometres separate the winemakers in California’s Napa Valley and consumers in Beijing.

Even so, they’re both affected by the trade war between the two largest economies in the world. The stand-off began last year, when the US brought in tariffs on washing machines and solar cell imports. Since then, trade relations have been on something of a roller coaster, appearing to deteriorate in recent weeks, although discussions ahead of the G20 indicate that a resolution could be close.

While some of the implications of the dispute are obvious – US tariffs on imported steel and aluminium hit China, since it’s the world’s largest steel exporter – there are some unforeseen side-effects in today’s hyper-connected economy.

Image: Statista

1. The trade war has given wine-makers a bitter taste

China’s wine importers and US exporters will be hit, according to Reuters. Additional tariffs on American wines mean there’s no wiggle room for importers, that story said.

US wine exports to China were $59 million in 2018, down 13% in volume and slumping almost 25% in value compared to 2017, according to the Wine Institute.

2. Chinese tourists are avoiding the United States

More than 10,000 kilometers away in China, the trade tensions also seem to be affecting how and where people are choosing to travel, which could dent the US tourism industry significantly, according to research firm, ForwardKeys.

The research from 2018 showed that the biggest impact was on bookings for group travel of six or more passengers from China to the US, which fell more than 30% in 2018 compared with 2017.

The trade war’s impact on Chinese tourism to the US.
Image: ForwardKeys

“Our findings strongly suggest that President Trump’s trade war has had a significant impact on Chinese tourism to the US,” said ForwardKeys CEO and co-founder Olivier Jager. “It is unquestionable that the Chinese appetite for visiting the US is diminishing and that is bound to worry the US travel industry.”

3. Your operating system

Tech giant Huawei Technologies confirmed it has built its own operating system in case the trade tensions interfere with its use of Google’s Android system.

While the company says it doesn’t want to shift away from Android and only plans to use its own operating system in “extenuating circumstances,” an escalation in the stand-off between China and the US could force its hand. And that could disrupt the role Apple and Google play in running operating systems worldwide.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

2018 Golden Pen of Freedom Awarded to Maria Ressa of the Philippines

This is how the world can get routine vaccinations back on track

Mobile Technology Saving Lives: Changing healthcare systems with simple technological solutions

These four countries are the happiest in the European Union

‘Power is not given, power is taken’, UN chief tells women activists, urging push-back against status quo

Where do Americans stand on immigration? They’re not as divided as you might think

FROM THE FIELD: One teen’s journey from refugee camp to US school principal

UN’s Guterres condemns ongoing airstrikes on Syria’s hospitals, medical workers

Mental health in times of a pandemic: what can each individual do to lessen the burden?

Parliament backs a modernised EU electoral law

A Sting Exclusive: “Paris is indeed our best bet for a secure climate future”, EU Commissioner for Environment Karmenu Vella cries out from Brussels

Making the most of our ‘extra time’ – for ourselves and society

This is the state of the world’s health, in numbers

Privatisation and public health: a question of Human Rights

Germany: A grand coalition may trouble employers and bankers

Sustainable investment is on the rise – here’s how to connect the dots

State aid: Commission approves €6 billion German measure to recapitalise Lufthansa

NASA has released new photos of the Apollo 11 moon landing

The European Parliament wants to stay in one place

Coronavirus could trigger a hunger pandemic – unless urgent action is taken

Where are the world’s nuclear weapons?

The world must pull together to stem the urgent crisis in our ocean

The COP24 Agreement: Yes, it happened at last

Afghanistan: UN ‘unequivocally condemns’ attack in Kabul

From Sweden to India, School climate strikes have gone global

The world has made spectacular progress in every measure of well-being. So why does almost no one know about it?

‘Leaders who sanction hate speech’ encourage citizens to do likewise, UN communications chief tells Holocaust remembrance event

‘Education transforms lives’ says UN chief on first-ever International Day

Lessons from dealing with the collapse of Lehman Brothers

Towards a seamless internal EU market for industrial goods

State aid: Commission approves €133 million Portuguese liquidity support to SATA airline; opens investigation into other public support measures

Do doctors need to know their patients’ sexual orientation and gender identity?

EU Parliament and Council: Close to agreement on the bank resolution mechanism

The unique frequency of felling the gab on women’s rights by medical students

Taking care in times of social isolation goes beyond washing hands or wearing masks

Venezuelans brave torrential border river, face exploitation, abuse – UN urges greater protection

China dazzles the world with her Silk Road plan to connect, Asia, Europe and Africa

Phone lines open between Ethiopia and Eritrea, and people are calling strangers

3 trends that will transform the energy industry

UN chief ‘deeply saddened’ by Ethiopia plane crash which killed 157, including at least 21 UN workers

Why are so few women buying into Bitcoin?

Germany may prove right rejecting Commission’s bank resolution scheme

UN calls for action to tackle ‘ubiquitous but invisible’ global road safety crisis

Future-proofing the European banking market – removing the obstacles to exit

GSMA Announces First Keynote Speakers for 2019 “MWC Los Angeles, in Partnership with CTIA”

UN launches drive to highlight environmental cost of staying fashionable

The EU Commission vies to screen Chinese investment in Europe

These 11 EU states already meet their 2020 renewable energy targets

In Marrakech, UN chief urges world leaders to ‘breathe life’ into historic global migration pact

UN expert ‘shocked’ by Egyptian reprisals against human rights defenders she met

Decent working conditions for the young health workforce: what are the challenges and can we find solutions?

LGBTQ+: The invisible poor on our healthcare

Commission announces actions to make Europe’s raw materials supply more secure and sustainable

These Asian economies invested in their people – and it paid off

How AI can inspire doctors to be more inventive

Russia won’t let Ukraine drift westwards in one piece

Latin America and Caribbean region deadliest for journalists in 2019

MWC 2016 LIVE: Ford trumpets new in-vehicle system, “fundamentally rethinks” transportation

These countries create most of the world’s CO2 emissions

National parks give a $6 trillion boost to mental health worldwide

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s