term investments. As a result, China has consumed as much as 59 percent of all chipsets of the world in recent years. But, the recent sanction against ZTE has served as a wake-up call, forcing the indigenous Chinese firms to invest massively in the development and manufacturing of chips. China’s meta power almost guarantees their success in this endeavour. Once these new investments come into operation in the following years, China would be a formidable competi-tor in the global market of chips and integrated circuit products, following the steps of South Korea and Taiwan. China’s shift to high end manufacturing has been ongoing for years and will continue whether or not a trade war breaks out between the two largest economies. But the sanctions against the Chinese firms would likely facilitate, rather than impede, the process.15Job Opportunities15 Nobel laureates signed an open letter warning the Trump administration that “new tariffs in response to trade imbalances” would harm workers across the country, much like protectionist measures did in the 1930s. Today Washington depends far more on trade, supply chains and globalization than it did over three quarters of a century ago. A Brookings Institution analysis estimated there are “some 2.1 million jobs in the 40 industries that produce products now slated for Chinese retaliation.” If Washington and Beijing proceed with reciprocal imposi-tions of tariffs, an even more recent study concludes, nearly 134,000 Americans would lose their jobs, and American farmers’ net income would fall by 6.7 percent.Rise of ChinaIn 1990, China’s gross domestic product ranked only the eleventh, lagging behind not only the US, Japan, Germany, France, UK, Italy, Canada and Spain, but also two developing countries, Iran and Brazil. By 2010, China rose to number two, next only to the US. China’s rapid economic growth has been attributed to:- 15. Huaiyin Li, “How China Will Benefit from a Trade War with America”, National Interest, May 17, 2018, available at : -china-will-benefit-americas-trade-war-25873?page=3
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US-CHINA Trade War: Analyses of Deeper Nuances and Wider Implications17 The Chinese Government’s reform measures, which ranged from the introduction of the household responsibility system in place of collec-tive organisations in agriculture and the rise of township and village en-terprises in the 1980s. Privatisation and incorporation of state-owned enterprises in the 1990s. Massive inflow of foreign direct investment.However, these are not uncommon in the rest of the world. These are found more or less in almost all other developing countries, but none of these countries has experienced economic growth as fast and enduring as in China. Economic fac-tors alone cannot fully explain China’s rapid economic expansion in the past or the sharp power it has developed outside the country. The reasons behind China’s rise as a global power may be due to China’s history and culture, which work to-
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