What If China and America Stopped Trading

What If America & China Stopped Trading? America and China may have a slightly tense
history, but the pair are two of the biggest trading partners in the world. How much do they really need each other? Hello and welcome back to Life’s Biggest
Questions, I am Rebecca Felgate and today I am asking What if the worlds two biggest
economies, America and China Stopped trading? Economics are hard to wrap your head around,
so I am going to try and keep this video simple. Currently the Unites States has the biggest
economy in the world, with a Gross Domestic of 18.57 trillion, whereas China is a close
second at 11.2 trillion. Economics experts predict that China will
be on par with the states by the year 2022, after which it will begin to overtake the
States as the biggest economy in the world. Both the Chinese and American Governments
benefit from trading with one another, yet both charge high Tariffs. United States President, Donald Trump, made
trade with China a key part of his campaign. Despite outsourcing production of his clothing
collection to China, Trump focused on downplaying internationally made goods, instead promoting
US made goods, which is all very well in theory. The past 40 years have been big for China. The country has lifted itself from poverty
to reasonable affluence by changing its previously closed economy that focused on agriculture
to a partially open economy, focused on manufacturing and exporting. Along with that change, the mood in the country
has changed; Chinese people want American Products. If they stopped trading, they’d lose Apple.,
Starbucks, Tiffany, General Motors, Ford, Nike , Microsoft, Intel, Coca Cola, Mcdonalds
and Yum!, owners of KFC. These American companies make a lot of money
in China and their businesses would suffer. In fact, without American exports in China,
the US would be worse off to the tune of 250 billion dollars. On the flip side, Chinese brands aren’t
as well known in the USA but America is buying a lot of Chinese products in the form of technological
parts, appliances and apparel, with companies outsourcing manufacturing to China. In 2016, China was the Unites States largest
supplier of goods imports, to the tune of $462.8 Billion dollars. In terms of the figures, we can see that China
sells the US more than the US Sells to China. In a trade war, or total trade embargo countries
with highest surplus get hit hardest. A lack of trade between the two countries
would have a hugely damaging impact on both countries, but in the short term, no doubt
China would suffer the most. That being said, unlike 40 years ago, China
now has the technology to make competing products on a bigger scale than the US. Some are calling Huawei the next apple, and
the telecoms company has grown 125% in the past 10 years. American companies would suffer, as would
American consumers. The American tech industry is reliant in china,
with Capital Economics saying that China produces three quarters of mobile phones, and 93 percent
of all laptops and tablets. Companies that rely heavily on Chinese imports
include Apple, Microsoft and Walmart. Without cheap labour creating cheap parts,
products from these retailers would become much more expensive for consumers, lowering
the standard of living in the States, at least for the short term, until the States found
a new trading partner or found a way to fill the void with products manufactured in the
US, although American Labour will still drive prices higher. Some think an end to trade with China would
mean that more jobs are created in the US, which could be the case, but not in the short
term. The economic decline suffered by the states
at the lack of trade with China would likely put people out of work in China dependent,
or run businesses. On top of that, low skill manufacturing jobs
are unlikely to ever make a return to America because the cost is too great. Some factory jobs have already been replaced
by machines, and the rest would likely be outsourced to a second or third world country. On the flip side though, higher skilled technical
jobs may return. Aside from the economic decline on both sides,
a lack of trade with America could greatly shake up Chinese politics. Right now, Chinese economic growth is one
of the reasons the people still support a communist government, however if the country
were to fall into economic decline, there could be political upheaval. Politics and economics are tricky topics to
cover in a short space of time, with both being complicated issues. Ultimately, both China and America would lose
a lot of money if they stopped trading with one another, with prices of consumer products
rising to unreasonable levels for United States Citizens. In China, the immediate economic suffering
would be worse, and it could have far reaching political consequences. In the long run, though, China is more readily
poised for recovery than the United States. All in all, though, a trade embargo at this
point in time would be pointless and damaging for both nations. That’s all we have in today’s episode
of Life’s Biggest Questions, If you guys have any further thoughts on the topic, let
me know in the comments box below. For now, I am Rebecca Felgate, be sure to
stay curious, stay alert and never ever stop questioning. Still watching? Why not check out our Biggest What If videos
Playlist and our Biggest Country Questions Playlist….hours of informative fun!

66 Replies to “What If China and America Stopped Trading”

  1. US will be in a worse state compare to China because not only they are having a trade war with China but also alienating their neighbours and the EU.

  2. OK— -Actually most of the imports from China are actually made in other countries like Vietnam, melasia and such so bypassing china and getting the parts that China uses to assemble into products, and biuld them in America would make America a Big winner.

  3. Rebecca Felgate is the most bias person (towards the UK) I have ever heard speak on a neutral platform.

  4. We'll have washing machines that last a lifetime instead of ten years again.
    We'll have steel that doesn't rust and rot.

  5. what if everyone stopped trading with america? on a sidenote china losing GM and ford wouldnt be so bad as those are terrible cars, like all american built cars.

  6. USA would die off fast if that happend Time we work together Let me export goods to china no we dont want china stop them brands

  7. If China stopped trading with the U.S.A…  Well step #1 would be, no more food exports to China, and that would devastate China in short order. The rest of the world would take 3 years to take up the slack and be hampered by the U.S.A. asking other nations to follow suit, this would likely cause global conflict on a limited scale.
    China has become increasingly reliant on imports to offset its domestic agricultural limitations, prompting Chinese leaders to openly reframe their strategy for food self-sufficiency. At the December 2013 Annual Central Rural Work Conference, it was noted that China’s food security needed to be ensured by supplementing its domestic supply with HEAVY food imports.

  8. Yes… we saved this country in WW2. They repaid us by becoming communists and trying to wreck our economy. They are double dipping into our money bag and TRUMP put a stop to it. Idiots. This is all aside from the fact that they are the biggest THIEVES of technology and military secrets.

  9. China would survive without any problems since they are used to live under harsh conditions during many many years and would adapt easily to the situation in hand.

    For USA to avoid total disaster with respect to their lazy grease eating life style (based on the obesity statistics), they just increase their debt more.

    Then the situation would of course be complicated since China today is the biggest foreign owner of the US national debt and on second place comes Japan.

    Will in one way be interesting how Mr Trump will solve this, but we can already assume what the outcome will be. Since he usually barks more than bites and in the end he has to be diplomatic and balanced. Voila, and the world keeps on going without any bigger changes for us normal persons 🙂

  10. If the country goes into economic decline, China will be less a candidate for any democratic conversion because its GDP per capita will not qualify. This is only wishful thinking.

  11. America is ADEQUATELY prepared to STOP trading with China or ANY other nations; America has departed from participating in joining groups or talking to people whom America regards as potential military enemies!
    Trump has removed people in his team/group whom he considers as opposers; dissidents; disloyal to him; (i.e. non-100% yes-people) etc.
    America is ADEQUATELY prepared NOW to fight warS!!!

  12. American is H2 and China is O2. One is explosive and the other is corrosive. But when both work together, it is water. Water is most condusive for livelihood on earth. When US-China work together, the world economy prospered.

  13. Quality would improve.
    Chinese would no longer be factory slaves living in tiny closets.
    The jesuits would flee to Russia in hopes of mercy.
    Evil Chinacorp would be chopped up in little pieces for their sins.

  14. China can easily replace US import goods from alternative sources. On the other hand US is heavily dependent on Chinese imports  which are mostly consumer products and parts. Without these Chinese quality but affordable priced products US consumers will suffer as there is scarcely any alternative supply.China export to US represents only 3% of her total export trade, and may be easily absorbed by expanding domestic consumption and new export markets. Should China and US stop trading with each other, impact on China will be minimal whilst US economy will be severely affected and in chaos.

  15. These companies would simply move their headquarters to China to provide for the 600 million middle class Chinese market. The americans because of their greed would simply automate.

  16. Everybody knew this was a beneficial arrangement for both parties until Donald the prick came along with his own version of economics when he works out his balance sheet where he counts the value of all products coming into the US from China at their invoice price making no allowance for all products containing parts having been sourced from all over the world Classic example Iphones show a cost to Apple of approx. $300.00 ( yes you are being ripped by Apple)
    and China makes about $7.00 per phone but Trumpconomics calls that a full $300.00 sale so it is easy to see why the trade deficit is where it is and until you guys get a sane person in office this problem will not go away.

  17. Hey when you showed the picture of China you show Taiwan Taiwan is the real China the People's Republic of China are communist rebels

  18. There are over 200,000 US companies having their products manufactured in China. The huge profits from these products have pushed up their prices on the US Stock Market. So my question is: If Trumps keeps raising the Tariffs on Chinese Imported Goods. In actually he is taxing American products made in China. The US Importer pays Trumps Tariffs which eventually is paid by the American Consumer as HIGHER PRICES. Won't the surplus monies stop flowing from China, and eventually Crash the US Economy?

  19. No there can be a china replacements like india pakistan bangledesh thailand burma indonesia so china would be more affected

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