US actions against China’s slowing economy may negatively impact domestic commerce.

The Biden Administration’s Tariffs⁤ and Tech Restrictions on China Could Impact the​ U.S. Economy

The Biden administration’s recent tariffs and new tech restrictions on China have the potential to cause blowback ‍to the ⁣U.S. economy, especially as Beijing grapples with​ a serious slowdown. This situation has significant ‌implications beyond just Asia.

Inflation Complicates ⁣Biden’s Path Back to the White House

The slowdown in ⁣China will ⁤directly affect ⁢the U.S. economy, according to Scheherazade Rehman, a professor of international finance at George Washington University. Additionally, the tariffs imposed on China by the United States further squeeze its economy. Rehman warns that the combination of a slowing Chinese economy and tariffs will have negative consequences for the U.S.

“There is nothing good⁣ here with this⁣ and China slowing down and doing this⁢ on top of it, and keeping the Trump-era tariffs on top of that — all of​ this is not boding well for us,” she‌ told the Washington ‌Examiner.

Furthermore, China is facing various economic challenges, including a contraction in manufacturing activity, decreased factory orders, lower domestic travel ‌spending, and an overall drag on consumption. The country is also experiencing a surge in youth unemployment and a property crisis.

Rehman emphasizes that if‌ Beijing does not ‍make⁢ the right decisions, the Chinese economy⁣ could stagnate for a long time, impacting not only the U.S. but the entire world.

Biden has⁣ continued the Trump administration’s approach of maintaining​ distance ‌between Washington and Beijing. Recently, he signed an executive order to ⁤regulate and block high-tech U.S.-based investments flowing toward China. In response, China expressed “serious concerns” and stated that it reserves the right to take measures.

The initial effects of the economic slowdown in China will be felt by U.S. farmers and energy producers. China’s decreased demand for energy products will hit energy producers, potentially leading to⁣ job losses. Additionally, as the largest importer and consumer of U.S. agricultural products, a decline in demand from China’s economy will ​negatively impact the U.S. agricultural sector, resulting in lost jobs.

If the slowdown worsens, more sectors of the U.S. economy will feel the effects. Supply chains will be disrupted, U.S. production in various⁢ industries⁢ will suffer, and eventually, U.S. ⁣consumers will end up spending ⁤more.

Biden​ has directly⁢ addressed China’s economic issues, referring to their situation as “a ticking time bomb.” He expressed concern over⁤ Beijing’s slowing growth and unemployment rate, stating that when bad folks have problems, they tend to do‍ bad things.

However, if the push toward decoupling with ​Beijing continues, it ⁢could directly impact⁢ the U.S. economy and consumers.

“This relationship is so symbiotic that ⁢anytime you try to squeeze your partner, it will⁤ end up reverberating back on ​you,” Rehman ⁢said.

*As an Amazon Associate I earn from qualifying purchases