Trade embargoes with China
Merchandising is an essential element of the economy growth and development in China. China’s economy has continuously developed rapidly due to different factors. Modernization of the economy in 1949 led to the spontaneous growth in products flow and improves its competence. In 2013, China trounced the United States to become the largest trading country in the world. This has resulted to an economic competition between the United States and China.

The U.S government imposed a twenty-five percent tariff on the Chinese products imported to the country. This was purposely meant to frustrate the Chinese economy and prevent them from exporting goods to the country. The United States being one of the import led economy, imports a large number of commodities from China. In US production industries do not produce much of the products needed therefore it heavily depends on China to sustain its retail economy.

Washington imposed threats on Beijing on

The United States and the European Union in 1989 halted the exportation of firearms to China. This was done after the Chinese government was involved in vicious act against Protestants in the Tiananmen Square in 2004. It was to weaken the Chinese military interventions and used as peace mechanism.

Washington imposed threats on Beijing on the sanction dominion in 2017 that was targeted on the Chinese funding. In response, China increased their relation trade with North Korea and the sanction had no impact on the Chinese economy. China is not dependent on the US imports because they have the capability of producing their own. Chinese exports to the US supports the household utilization in all crucial items. These commodities include jewelry, electronics, clothing, household fixtures and even food.



In 2018, China also foisted a tariff of twenty-five percent on American soya beans. Soya beans being one of the most exported commodities in the country, it has had a negative impact on the economy of the country. It has resulted in the low prices of soya beans that has caused closure of different soya beans farms in the country. Brazil being USA's biggest competitor in the sale of soya beans has gained a lot from this. There has been an increase in the demand of the Brazil soya beans due to the closure of farms in the US.

China is the leading producer of rare earth metals such as, neodymium and terbium. These elements are essential in the manufacture of important materials and electronics. The United States also have rare earth metals but its exploration is expensive hence there is no mining. Purifying this is cheap in China because it has lax environmental grade. As long as China imposes an embargo on this rare earth metals it will result to rise in their prices.

China has an estimate of 1 trillion dollars of the approximately 3 trillion US bonds. Chinese dollar dump may result in the dropdown of US interest rates and the economy. China needs the US in their economic growth and US needs China for their development. These two countries should develop mutual relationship that is of value to both countries and the globe at large.

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