Current Event - Free and Fair Trade or Budgetary Issue Social Essay

US-China Trade Wars
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US-China Trade Wars
The article “US restrictions on textile imports from China may benefit India: Icra” from The Economic Times (2020) brings to light some astonishing news and revelation on the prevailing US-China trade wars. The article specifically points out the fact that the banning the importation of textile products from Xinjiang, China's largest cotton producer, would greatly benefit India. The restriction came amid concerns of forced labor that are persistent in the cotton industry in Xinjiang. Other products on the chopping board include hair products, computers, and accessories. The article reiterated that the ban negatively impacts China's economy as well as the global cotton trade.
The article further predicts a radical shift in the apparel industry as a result of the ban. The ban on China’s export, which contributes three-quarters of the world's cotton product would require a radical shift in the source of the raw material. India has placed itself as the potential benefiter of the ordeal between China and the US. Icra Ltd, heavily featured in the article, had already established a massive migration from the Chinese cotton market due to the coronavirus pandemic purported to have originated from the region. Coupled with the trade wars and the supposed forced labor in the textile industry in China, Icra Ltd notes a tremendous shift to other potential markets including Vietnam, Bangladesh, and India. The article further explained that the ban is not necessarily sufficient in leveling the score for US-China trade wars because of alternative markets and the loopholes in the global trade systems. Besides, China is also likely to take stern action in retaliation that might be messy and disastrous for the US and the global market as a whole. Thus the article concludes by predicting that the ban is less likely to survive in the long run.
The issue discussed in the article revolves around the ban that the US government has imposed on the Chinese government, citing the use of forced labor in the production of textile products. It further pinpoints India as the potential beneficiary in the scenario. US labor policies are against forced labor, and the domestic policies featured in the decision to bar the Chinese products. The ban also signifies the interference of international trade policies that facilitate free and fair trade between countries. Although the ban is meant for the greater good, US retailers and stakeholders in the apparel industry are likely to suffer the consequenc...