The article, China Halts Export-Subsidy Program After U.S. Challenge by William Mauldin, talks about how the United States acquired $1 billion in three years while China made $482 billion last year. As a result, the Obama administration wants to make a new trade agreements because of the alleged trade violation by China. The World Trade Organization also ended a program that aided small exporters throughout China. Americans employed in seven diverse sectors won because of this. This also showed Beijing taking initiative to easy trade tensions. Trump wants to continue to hit China because he wants the United States to, at least, be second to China.
We learned that subsidies encourage domestic firms to produce more in a given industry. China has the labor to do so and they found a way to use the smaller firms as a way to be considered a "small country." Like Ryan said in his post, It will not have a effect on small country, but will hurt big countries instead. One of the sectors is fish, and we lost this impact of an export subsidiary because fish is more dominant in Asian than the United States.
It will be interesting to see how trade with China is affected under the Trump administration. Trump promised to impose tough trade restrictions on China. If he follows through with his promise, it could severely hurt China's terms of trade. I'm curious as to how China would respond to increased trade restrictions.
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