#TariffsPause

U.S. - China relations 🇺🇲🇨🇳 are much more complex than they first appear, both in economic matters as well as in political aspects.

🔸🇺🇲 U.S., although being a superpower has been in decades of poorly handling its economy, with decreasing domestic production and increasingly negative trade balance.

🔶This policy has had bad consequences on Americans psychology 😟. The governments actually spoiled them by uncontrollably letting them consume more than they produce, leading to a "lazy" population on high debt.

🚨Through the years a highly interdependent economic relation with China has been emerging. With U.S 🇺🇲. on a high demand for cheap Chinese products on one side, and on the other side China 🇨🇳 exporting to the U.S. and also becoming the largest holder of U.S. debt.

📝The reforms to improve the situation represent the wake up 🥱 after years of an unhealthy economy. The way these reforms were put into practice though, was controversial and risky because it was done through imposing worldwide tariffs. The intention of this move was to hit the export part which is vital for Chinese economy thus hurting it and hoping their politicians will crack first under pressure.

✴️The risk of such sudden, extreme and radical turn by the US side to go "cold turkey" on cutting dependence of trading with China, can backfire. What that means is that by trying to damage China, in this interdependent environment, without a doubt is going to hurt U.S. too. The degree of damage the two sides will sustain is going to determine the winner of this confrontation.✴️