US-Sino Trade War, A Trading Setback Or An Opportunity For Emerging Markets

Abstract

After trying to nurture positive diplomatic relationships among two major economies in the world, a cold war has been converted into a trade war between China and the United States of America. Massive tariffs have been imposed on Chinese imports by Trump administration due to which china stroked back with its tariff policy for American products. Different Chinese companies like Huawei and Haier must face unforeseen circumstances due to trade war. The market for Chinese products seems to shrank post trump policy; on one side, it is a major setback for the Chinese market as an emerging market. On the other hand, it is a golden opportunity for other emerging markets like India, Taiwan, Singapore, South Korea, and the Philippines. US-market is a vast market for Chinese electronics, technology, agriculture, leather, furniture, and many more household products since china entered in the race of globalization. A rise in tariff triggered a trade war, resulting in a decrease in Chinese share in US-market. This trade war has offered a golden opportunity for emerging markets to take over Huawei and Haier's market due to trade barriers and bans on them from the US. This paper will study deep-rooted causes of the US-Sino trade war by examining the impact of a trade war on Huawei technologies and Haier; big Chinese firms dealing worldwide and have a large share in the US-market. The research type will be exploratory, and most of the data is based on secondary data sources. It has been found in this article that the US-Sino trade war is causing losses to both economies on international trade forum. The products from other Asian countries are replacing the Chinese products in the USA. On the other hand, the emerging markets like India, Hong Kong, South Korea, and Taiwan benefit from the absence of Chinese products from the international market. Hence, the winner of the US-Sino trade wars is emerging economies.