The 'good days' of the economy to come soon!
The whole world feels relief from the US-China trade deal, hope to get rid of economic slowdown soon
JAN 16 (WTN) - The global economic slowdown has affected many economies across the world including India. According to a report by the International Monetary Fund itself, the economic downturn has negatively affected 90 percent of the world's economies. According to experts in the international economy, the US-China trade war has been a major reason for economic slowdown all over the world. China itself has suffered a lot due to this trade war. For information, let us know that in the month of July last year, the industrial growth rate in China had come down to the lowest level of 17 years.
As far as India is concerned, the economic slowdown has left a deep impact on the Indian economy. The automobile sector has been the most affected by the economic slowdown. At the same time, due to the economic slowdown, the unemployment figure in the country has also increased. But if we tell you that the good days of the economy are soon to come, then reading this, you must be wondering what is meant by the good days of the economy? So for your information, let us know that the trade war between America and China is going for an end soon after some time now. After all, the economies of many countries including India will benefit from the end of the US-China trade war, let us tell you in detail about it.
First of all, let us tell you that America and China have increased the first step towards ending the trade war. Explain that both countries have signed the first phase of an important trade deal. It is important to know that in the month of December last year, both the countries had decided to move towards a trade deal. The most important fact about this deal is that under this first phase, the US announced the withdrawal of some new tariffs imposed on goods imported from China. At the same time, after this deal, China will import more agricultural products from America.
Let us know that due to the continuation of the trade war, both countries were suffering a lot of damage. In the month of November last year, China's exports to the US dropped by 23 percent to just $ 35.6 billion. During this period, imports of American goods had fallen by 2.8 percent to only $ 11 billion. Now that the trade war between the two largest economic powers of the world was going on, the economy of many countries of the world including India was being affected by it. Actually, the import and export of other countries of the world along with the US and China depend on how the trade relations between these two countries. If the trade relations between the US and China are not normal, then it has a significant impact on the import and export of other countries of the world.
As we told you, the economy of many countries of the world was being affected by the US-China trade war. In such a situation, the signing of the trade deal between the two countries saw a boom in most of the world's stock markets. Explain that after this trade deal, China will import more than $ 200 billion worth of American goods in the next two years. This will include agricultural products worth $ 50 billion, manufacturing products worth $ 75 billion and products related to the energy sector worth $ 50 billion.
At the same time, US President Donald Trump described the deal as historic, saying, "The second phase of negotiations with China for trade deal will also start soon. Until then, however, tariffs on Chinese imports of hundreds of billions of dollars will remain the same as before. At the same time, as soon as the consent for the second phase is made, the US will withdraw the extra tariff. ”
For your information, let us know that the trade war between the two largest economies of the world was going on for the last 18 months. In the trade war, both countries imposed heavy import duties on commodities, mechanical parts, and finished goods. In fact, Trade War was started in the year 2018 by US President Donald Trump in which China sought to reduce the trade deficit on a large scale. China's major demands included an intrusive verification mechanism to monitor Beijing's promise to protect intellectual property rights, transfer of technology, and greater access to American goods in Chinese markets. Due to the trade war, both countries have imposed additional tariffs on the goods worth nearly half a trillion US dollars so far.