When the matter of trade is under discussion, it is important that one should focus on diplomacy between countries. It matters how are the relations between two leading economic because it can impact the whole world. Speaking of the trade-war between US and China, the conflict is huge. They act like two economic rivalries but let’s not ignore that both are dependent on each other when it comes to the economy. One can figure out why it is important for traders.

Firstly, the high tech and industrial companies which are based in the US crucially depend upon the line of global supply chains. In this regard, China is a key supplier of components which are needed in order to produce goods especially the technological equipment. One of the prominent examples is the Apple Company because the majority of the world’s supply of semiconductors is manufactured in China. Secondly,  It is obvious that the rising tariffs on imports which are coming from China would raise their costs. Also, the U.S. companies in both sectors also considered China as a key market for their goods and services. Higher U.S. tariffs mean declining demand for Chinese goods for the U.S.  Due to the globalized economy, this can affect the prices of products made in both the USA and China which are purchased all around the world.


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