06/07/2019
The tightening Noose?
The political economic landscape in continuing to get crippled, thanks for the trade spat between the US & China. Global leaders are finding a way to allay the issue that it might present before it gets the better of them. It's almost a year since Trump imposed tariffs on the imports from China, the consequences which will ripple through globally if a fair resolution ain’t made between the US & the Chinese counterpart.
This little recess has been difficult to contend as to whether the US puts forth its plans to contain the rising of China as a supreme power in the Asia Pacific is yet not known. More & more unravelled arms deal to INDIA puts tacitly the intentions of the USA to reign as the numero uno nation in the world.
It incriminated not just imposing the duty on the products from China, US recent blacklisting of the Huawei was adding more to the disquiet to the throes of the political-economical demographics. The losses of the companies which are the suppliers to Huawei were more whirling in the trouble than Huawei. The US already in on the cusp of adopting the 5G for which Huawei ban could have served as a low hanging fruit for the likes of AT&T, T-Mobil etc just riddles the gawkers.
The phone giant APPLE also had its share of woes of the trade spat. Currently, most of the iPhones are assembled in China by Foxconn which had to move out to other countries if the trade war deteriorates. Foxconn spawning facility in Bangalore is where the paradigm will shift. But the facility here only churn out the older models of iPhone & it will be a test for its abilities for producing the latest versions of I-phones.
The G-20 summit proved to be very crucial in the context of global economics. Trump & Xi Jinping would be the two greatest spheres of influence to brighter or a murkier way forward. Fortunately, the two leaders decided for the better than the race to become the No 1. The decision to hold off on the additional duties temporarily should shift gear to move on a permanent basis and there are strong possibilities.