The Chinese people are not at fault here Come, let us see First, we will talk about the economic tactics. But I would like to begin with the basics of trade Why would any country trade with other countries? China economic tactic to rule over other countries. There could be three main reasons First, the non-availability of a certain product in your country while it is available in another country. For example, bananas were not available in Britain, in the UK, prior to 1633 because their climate was not suitable for growing bananas So, they would want to trade to import bananas The second reason could be the availability of a product or service in another country, at cheaper price as compared to your own country.
A good example of this would be the call centers in India US companies have set up their call centers In India because it’s cheaper for them to do so here as compared to the US. The third reason could be the availability of a product or service of better quality in another country That is why you would want to trade with them. So advantages of trading are very clear Consumers will have more choices and have access to cheaper goods Every country will be able to specialize in its own indigenous areas and be able to build better products and this could benefit all the countries internationally.
So economically it’s good for every country. In fact, trading is so beneficial that research indicated that for every 1% increase in the trade to GDP ratio, There is a 0.47% increase in the GDP to per capita ratio of that country So, there is a clear cut relation here- trading increases the GDP of a country But this is a very simplistic explanation and there are many other complexities in the real world.
For instance, what about developing and underdeveloped countries that cannot develop a specialization in any sector on their own? If a country neither has a great natural resource, nor a specialization in anything so they would not be able to export any product or service to other countries They would only have to import Under these circumstances,s trade will only result in losses for that country. What can a country do in such a situation? In such a situation several developed and developing countries levy import taxes that are called tariffs Taxes would have to be paid to import a product from a country abroad.
This would make that product more expensive for the consumers Imposing such taxes ensures benefit to the local industries of the country There could be several other reasons for imposing tariffs For instance if a country wants to pressurize another country regarding a geopolitical decision, Or if a country disapproves of an China economic tactic decision of another country So tariffs are also imposed for mounting pressure. Let us now see how the Chinese Communist Party misuses trade and tariffs against the other countries China joined the World Trade Organization in 2001.
Certain conditions were imposed upon China while joining the WTO China promised to liberalize and open up its economy further so that trade could be easily conducted between China and the other countries But today, 20 years later, China has opened up its economy to some extent But speaking broadly, China has aggressively misused the WTO for its own benefit So, what is the situation today? You can find made in China products in almost every country across the world This is the extent to which China exports its products abroad As far as imports go, the largest social media networks in the world- YouTube, Facebook, Google, Amazon are nowhere to be found within China.
China has not allowed them to enter its realm This is a one-sided trade, in a way China allows the export of made in China products very easily but restricts the entry of other countries within their own realm Instead, China copied these companies and pilfered their technology and created copycat clones of these companies within their country Today, I-in China, Youtube is replaced by Youku, Amazon by Alibaba, Google by Baidu and Facebook by Weibo These are all copy cat companies that stole the entire concept and ideas and have created their clones to prevent the other companies from reaping benefits and to prevent the other countries from benefiting from trade.