US-China Trade War – Zimbabwe's Position: Commentary

266 1

United States of America (USA) and China are engaging in a trade war with the two economic giants creating punitive tariffs on imports in the Northern Hemisphere. Zimbabwe is still trying to recover economically and the African country might find itself taking one side over another when things get sourer. Due to the past relations with China, Zimbabwe is likely to stand with China if trade wars come into full scale. The following is a commentary on Zimbabwe’s position on the US-China trade wars.
On this commentary, there is need to first of all need to define what a trade war is. A trade war is an economic conflict in which countries impose import restrictions on each other in order to harm each other’s trade according to the Collins Dictionary. US and China are threatening to impose trade tariffs on each other to restrict the trade of goods and this could be with the intention of causing harm qualifying to be an emanating trade war.

US-China Trade Wars

The warning shot of the escalating trade war started with the USA announcing a list of 1,333 Chinese imports to be subject to punitive tariffs of 25%. The US President, Donald Trump had earlier on complained unfair trade between the Americans and other nations.

“Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!” said Trump on Twitter.

US trade deficit with China was $375 billion in 2017. The US had exported $130 billion to the Asian nation and China exported $506 billion to the North American country. In response to the USA move, China has been threatening to impose tariffs on 106 US products. The government of China announced plans to match US’s tariffs on $50 billion in imported Chinese goods with import levies on US soyabeans, cars and aeroplanes according to The Washington Post.
The current position of the emanating trade war is that the US tariffs on Chinese products will come into effect after a public comment and consultation period that should take about two months according to The Guardian. On China’s side, the Chinese said that implementation of its tariffs will depend on the US.

Zimbabwe’s International Trade Position

Zimbabwe states that it was for the past 20 years isolated from the world with its economy its harsh conditions. The African country states that it is now open for business and is calling investors from all over the world to invest in the Zimbabwean economy.
During the “isolation era”, Zimbabwe called China “all-weather friends” as the Asian country continued to trade with Zimbabwe. The USA had in the same period “imposed” what the Americans call “targeted sanctions” stating issues to do with human rights and democracy.
The “Zimbabwe is open for business” mantra is being done to attract investors in the country. President Emerson Mnangagwa is engaging both countries China and USA for business.

Zimbabwe-China Relations

With China, the African President has is currently on a state visit with a delegation comprising of 10 ministers. China and Zimbabwe have a long time relationship as the Zimbabwean government calling Chinese “all-weather friends”. China seems to respond well as it writes off Zimbabwe’s debt to the Chinese institution according to a Zimbabwean local media on microblogging site Twitter.
Although there seem to be good relations between Zimbabwe and China, the externalisation list that was revealed by Zimbabwe’s leader points at Chinese as the most culprits in taking out money from the African country. In response to the externalisation documents, the Chinese ambassador said the list is not credible and that there are many loopholes. The ambassador also said that Zimbabwe must have a clear sight of who is their friend.

“You must be able to tell who is trying to poison the relationship. Do not miss the forest and target the tree,” Chinese ambassador said.

China’s investments in Africa has been criticised as a form of colonization, but Chinese officials argue that Asian development has no strings attached. A Chinese official is on record saying that the Westerners come to live in infrastructure built by China.

Zimbabwe-US Relations

As with the USA, the Zimbabwean President said that American investors could come and invest during the World Economic Forum at the start of 2018. Zimbabwe’s leader has an article in an American newspaper stating calling investors for Zimbabwe. American ambassador said that the US embassy is receiving many calls from business people interested in Zimbabwe.
Relations have however not been strong between Zimbabwe and the US as the American country extends “targeted sanctions” on the African country. Asked if he would like to meet the US leader during WEF, Zimbabwe’s leader did not show much interest after it was revealed that Trump had called African countries “*hole”.

Conclusion

Zimbabwe is likely to stand with China due to its longtime relationship. It is hard for Zimbabwe to take a neutral position due to its commitments with China.  The fact that President Emerson Mnangagwa is in China with debts being written off implies that Zimbabwe’s position would be with China if trade wars come into full scale.

1 comment

  1. [url=https://thesisacloud.com/]thesisacloud.com[/url] thesis editors thesisacloud.com phd thesis help

Leave a Reply