Title: How will the US-China trade war affect global Supply Chain? | Corporate training Skill Dynamics
Headings: How will the US-China trade war affect global Supply Chain?
How will the US-China trade war affect global Supply Chain?
Low Profitability
Prices increase
Demand declines
US China Trade war – Is it the right approach?

Content: valid concerns about access to markets and intellectual property violations. Many believe that the right approach is to pursue them with the World Trade Organization, not through tariffs. This is mainly because using tariffs only opens it up to retaliation from China. We should not forget that China has a large arsenal of weapons, beyond tariffs, that it can use against the United States. Some of these weapons are: One of the actions which China is currently taking: Counter the drop in foreign purchases of Chinese goods through increased domestic spending. The US executive branch cannot execute similar stimulus without a spending bill approved by Congress. The possibility to depreciate the yuan to lower the price of Chinese goods to American buyers in order to counter the impact of tariffs. China can deal with this situation by creating closer trading relationships with other countries to isolate and exclude the United States (for example, China cut auto tariffs for US allies).