Since 2018, the multilateral trading system has challenged by the United States’ unilateral decisions of raising import tariffs on certain trading partners, especially with China. This decision was taken based on the continuous increase in the trade deficit. This trade war affected the world economy negatively but it has potentially positive effects on developing countries like Bangladesh.

1. WELCOMETO MY
PRESENTATION
US-China Trade Conflict: Potential Trade
Opportunities and Investment in
Bangladesh

2. Presented By
■ Ashok bala
■ ID: 20151121062
■ Session: 2015-2016
■ Department of International Relations
■ BSMRSTU
• Mahabuba Uddin
• Lecturer
• Department of International
Relations
• BSMRSTU
Supervised By

3. CONTENTS
1. Introduction
2. The objective of Research
3. Central Research Question
4. Methodology
5. Review of Literature
6. Theoretical Understanding
7. US-ChinaTradeWar Unfolds
8. Findings
9. Chinese Investment in Bangladesh
10. Analysis
11. Recommendation
12. Conclusion

4. Introduction
■ Since 2018, the multilateral trading system has challenged by the United States’ unilateral
decisions of raising import tariffs on certain trading partners, especially with China.
■ This decision was taken based on the continuous increase in the trade deficit.
■ This trade war affected the world economy negatively but it has potentially positive effects on
developing countries like Bangladesh.
■ In this presentation firstly, I will present the unfolding of the US-China trade war and its
background.
■ After that, I will show how can Bangladesh be benefited from this trade war from industrial,
apparel, and agricultural sectors
■ Then finally I will present Chinese investment in Bangladesh.

5. The objective of Research
■ This research has two broad objectives.
■ The first objective is to find out the potential trade opportunities and investment in Bangladesh
from the ongoing trade war between the US-China.
■ The second objective is to find out potential sectors which can be beneficial from this trade war.

6. Central Research Question
■ How can Bangladesh be benefited from the ongoing trade conflict
between the USA-China?
Supporting Questions:
a) How is Bangladesh winning from the USA-ChinaTradeWar?
b) How can trade war be a blessing for Bangladesh?
c) What challenges will Bangladesh face from the US-China trade war?
d) What actions needed for Bangladesh to grab the opportunities from the US-China trade
war?

7. Methodology
■ In this research both qualitative and quantitative methods are used.
■ This research is conducted based on secondary data available on the internet.
■ To conduct this research data were collected from: i) Journal articles; ii) research firm reports;
iii) trade journals; vi) newspapers, vii) websites, and so on.

8. Review of Literature:
■ John Edwards a Professor of Public Policy at Curtin University said the US-China trade war is
imaginary. He stressed China’s ability to compete in high-technology manufacturing, which is
America’s strength.
■ He argued that anAmerican decision to economically ‘decouple’ from China would be at least as
damaging for both the US and China and perhaps much more so.
■ Dan Steinbock a visiting fellow at the Shanghai Institutes for International Studies argued that the
U.S. and China economics has global importance on the basis of their nominal DGP, which can be
illustrated in two ways: one involves the rise of the Chinese economy relative to the U.S.GDP; the
other focuses on the concomitant shifts in globalization.

9. Continue…..
■ According to KPMG Economics &Tax Centre report, this ongoing trade war would inflict a
prolonged recession in the world economy. Because of the trade war, it is estimated that after
five years, the world GDP is to be around 3.5% lower
■ Author both Joshua P. Meltzer and Neena Shenai believed that China’s economic model and its
failure to fulfilling the commitment toWTO, drag the two countries into a trade war.

10. Theoretical understanding:
■ In this research, protectionism has applied as a theatrical radar.
■ Protectionism refers to government trade policies intended to assist domestic producers by
means of raising the price of foreign products, lowering cost for domestic producers, and
limiting foreign producers’ access to domestic the market
■ The USA has taken this protectionist measure to reduce persistent trade deficits in the
United States.
■ Since the US has imposed additional tariffs on Chinese products it's domestic production
has increased significantly.

11. US ChinaTradeWar Unfolds:
■ Since US President Donald J.Trump came in power, he criticizes his country’s huge trade deficit
and China’s unfair trade practices with the USA.
■ In the first quarter of 2018, the United States ofAmerica has imposed additional tariffs on steel,
aluminum, washing machines, and solar panels imports.
■ China also immediately retaliated with tariffs on an equal amount of imports from the USA.
■ Total US tariffs applied exclusively to Chinese goods: US$550 billion
■ Total Chinese tariffs applied exclusively to US goods: US$185 billion

12. Findings
Factories relocating from China:
■ The US-China trade war forced a significant number of foreign companies to move from China to
other countries.
■ Not only foreign companies are leaving but also local companies are leaving China too.
■ Because of the United States’ additional tariffs on Chinese products, its price in the US market
has increased and sell has reduced.
■ To avoid higher tariffs factories are relocating from China to another country, in this regard
Bangladesh poses a competitive advantage position.

14. Apparels
■ China is the largest apparel exporter in the global market, with its shares around 33.7
percent following by Bangladesh with accounting only for a 6.5 percent in 2017.
■ InAugust 2019, the USA imposes additional 15% punitive tariffs on Chinese apparel and
textile imports.
■ According to the American Apparel and Footwear Association, these additional tariffs hit
91.6% of apparel, which has created greater opportunities for Bangladeshi apparel
industries.
■ To avoid additional tariffs the US retailers are now coming in Bangladesh. So this trade war
brings for Bangladeshi garments a great opportunity.

15. Agricultural Products
■ China’s retaliatory tariffs on the US agricultural product have reduced soybean, cotton and
wheat price which is the main import goods for Bangladesh.
■ Presently Bangladesh imports 2 million tons of crude vegetable oil, of which 600,000 tons is
soybean.
■ Now Bangladesh can import soybean from the US market with relatively low cost as the US
soybean the price has fallen after China’s tariff.
■ Bangladesh is the fifth-largest importer of wheat in the global market and its volume is around
six million tons. Now this war has also create opportunity for Bangladesh to import wheat with
relatively low cost.

16. Continue….
■ China was also the major destination for US cotton but the ongoing trade war has brought a
tremendous effect on US cotton export in China.
■ On the other hand, cotton is a vital product for Bangladeshi apparel industry. Bangladesh is the
second-largest cotton importer in the world with 12% in total.
■ Now Bangladesh can use this opportunity to import US cotton at a low price.
■ The US president has given importance on reducing the trade deficit with its trade partner and
it has a $4bn trade deficit with Bangladesh, and at any time the USA can also import tariff on
Bangladeshi products.
■ So if Bangladesh import from the US, then Bangladesh will be beneficial from the ongoing trade
war and trade deficit with US will reduce.

17. Analysis
■ This research has mainly focused on the US-China ongoing trade war and to find out the benefits
of Bangladesh.
■ I have found that the US-China trade war has created opportunity in the Bangladeshi apparel,
agricultural and industry sector.
■ Especially garments industries is the most beneficial sector then agricultural sectors. In the US
domestic market agricultural products price has reduced because of Chinese retaliatory tariffs
which is potential for Bangladesh.
■ This war has also affected the iron import from the USA.
■ This war has also increased the Chinese FDI flow in Bangladesh.

18. Recommendation
■ Bangladesh needs to formulate a foresighted foreign policy that can bring sustainable FDI in
Bangladesh.
■ Bangladesh has to develop domestic infrastructure to ensure that it is capable of
accommodating an increasing number of factories.
■ Bangladesh also has to provide an uninterrupted and adequate supply of gas, electricity and
other logistic along with the a robust business environment and good governance.
■ Bangladesh have to increase import goods from the US to avoid additional tariffs.

19. Conclusion
■ As the US-China trade war intensifies some countries are affecting positively and some are
negative. Bangladesh is on the positive side has potential opportunities to gain from the war.
Bangladeshi garments industries is the most beneficial sector and then agricultural sectors. In
the US domestic market agricultural products price has reduced because of Chinese retaliatory
tariffs which is potential for Bangladesh.

20. ANY QUESTIONS
?

21. Thank
You