The US and China trade war have embarked upon a full-scale trade war as both sides lob threats of new trade tariffs. Initially, China hiked taxes over the products of the US. A huge amount of US market depends on the products imported from China. And China encashed the opportunity to boost up its economy and put over a little more pressure on the United States. The negotiations between both the sides on trade have been broken down.

Both the countries come up at such a situation where they both entered in damaging the trade dispute which is making both sides to levy tariffs on billions of dollars’ worth of one another’s goods. Meanwhile, a phase arises between both the countries to come up and conclude over the mutual decision which leads to holding off on new tariffs for 90 days to allow for talks. Over this trade dispute, the United Nations Conference on Trade and Development (UnCTAD) has warned that it could be a huge financial loss if the trade war escalates.

So, both countries might have been secretly looking for other options, as it is obvious that they need to fulfill their requirements if they are not getting it from the existing source. Therefore, the Trade War between the two economic powers will be a win-win situation for other countries. Thus, the reduction of trade between China and the USA will result in ‘Trade Diversion’. The U.S. tariffs imposed on China might be helping some third country or we say countries because the industries which used to export from China to the U.S. are shifting their production facilities to elsewhere.

Here, in this Cat race, there is a number of mice which are getting benefitted with this fight. One of the mice is ‘Vietnam’ and China’s loss seems like Vietnam’s gain. The import-export between China and the USA has fallen and on the other hand, the US import from Vietnam has taken the growth of skyrocket. After this trade war, the USA is looking for countries like Vietnam, and Ethiopia because these are poor countries and have a great labor force. So, the problem of the trade war with these countries won’t be easily possible.

As the USA looks for low-wage production bases, then these developing countries or we say poor countries would prove to be a great opportunity for the USA. In these countries, most of the population struggles to manage a daily meal and a shelter. So, manufacturing is the best option for these countries to fight against all these problems. However, this initiative will provide a huge number of employment, and most importantly it will give people the skill of Industrial Learning and Economic Diversification. Likewise, other countries also get benefited due to this dispute, and these could be the Philippines and Indonesia.

The US trade with such small Asian countries will make China a vulnerable and insecure country about its loss. But in a way, it will be good as well for these poor countries who are facing the dominance of China over them. If their economies are supported by country like the USA, then this Asian dominance might change very soon, and the US can play a good role in minimizing the dominance of China in the region.

These could be the reasons that the USA need not take too many instructions and experience the dominance of China over it. Because for the USA still there are many options available and still exist to support its economy as well as diminish the dominance of China as well in the global market.