One of the main objectives of US President Donald Trump in his trade war with China was to reduce the country's trade deficit and to boost its industrial output. However, US manufacturing is growing at the same pace, while the trade deficit has soared to a record $84 billion over the past year.
An increase in customs duties on Chinese goods as well as a number of European goods was supposed to push American businesses to bring back production from overseas. However, the plan failed. Instead of building plants and factories in the United States, American importers found a cheaper alternative, switching to Vietnam, Mexico, and other countries. According to experts, the only state which had supported the United States during that difficult time, ironically, was China. The risk of introducing new duties forced Beijing to stock up on American goods, which undoubtedly helped to restore production in the US.
In general, most experts consider China to be a clear winner in this trade war. The country's GDP grew 3.2% in the second quarter from a year earlier, while the US economy shrank by 32.9% on an annualized basis. Analysts also note that it is a matter of time before Chinese tech companies become number one in the world. So far, the attempts of the White House to stop it have not borne fruit.
