Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora
4) US – China trade war has now entered an unchartered territory and has begun to affect sectors other than just economy. Critically analyse the statement in the backdrop of ongoing trade war.(250 words)
Why this question:
The question is based on the ongoing trade war between US-China and the spillover effect of the same across different sectors.
Key demand of the question:
One has to bring out different dimensions other than just economy that have taken a hit across the world owing to the trade war between the two.
Critically analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
In brief explain the context of the question.
Explain in detail the following aspects –
First discuss the tariff aggression between the two countries, how it began and what the underlying causes were.
Explain Why US faces a trade deficit vis-à-vis china? – Imports from China account for more than a fifth of aggregate U.S. imports. With exports to China being nowhere as large, the U.S. runs an annual trade deficit with that country of around $420 billion, which ‘imbalance’ is attributed to Chinese policy.
Discuss the various fronts other than economy that have taken the hit like the technology front, currency front, deglobalisation etc.
Also have a brief write up specifically discussing impact on India.
Conclude with way forward.