The United States recently announced an increase in tariffs on $200bn of Chinese consumer and other goods from 10 to 25 percent, with further increases to come. China responded with its own schedule of tariffs on U.S. goods. Next, the U.S. banned Chinese tech firm Huawei, prohibiting it from buying American parts and components. China responded with a threat to restrict exports of rare earths, a key component in tech equipment and phones.
Together, the United States and China make up 40% of the global economy. What we are witnessing today is not only an economic struggle between the two largest powers in the world, it is a clash between polar opposites in political, economic and philosophical thinking.
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