Wars are as old as human history. While Great and Cold wars bought industrial revolution, the SINO AMERICAN trade war has bought some great beneficiaries of it on the face of global economy who seem to have profiting from this worldwide economic frenzy.    

  

Here is a little sneak peek to ever complicated US China economic relationship since 2016:

2016: China’s trading practices freak out America’s to-be president Donald Trump.

2017: US imposes heavy tariffs on Chinese goods amid launched investigation into Chinese trade practices.

April: Xi Jinping (Chinese premier) and Trump agree on 100 day plan to alleviate the rising trade tensions.

July : Talks fail!

2018:  US presents its plan for 10% tariffs on Chinese goods worth $200bn.

May: Trump’s plan executed.

August:  Trump orders to increase tariffs by 25%.  Doubling the duties from 10%.

China backlashes with 25% duties on US goods worth $16bn, increased to $110bn later on.

Just like US profited during World War 2 by exporting its goods to the warring areas, small economies of South America, Asia and bigger players of Europe like Germany are also trying their luck to get access to American and Chinese  trade markets.

Since America imported almost every tiniest bit ranging from cheap merchandise to chemical, medical equipment and rare metals ( which are key components in high-tech products) from China. It might now consider tilting towards  other key players in emerging economies of Global South.

Beneficiaries of US China trade war:

India

Being the closest ally to US and second closest option after China for foreign direct investment, there’s a wide range of possibility of it being the hub of North American FDIs.

Thus, exploiting the current situation might act in the favor of Indian economy.

Mexico

Mexico being right at the America’s doorsteps can be the ultimate beneficiary of this war. While tariffs imposed make  Chinese raw material expensive and constrains the supply side. America quite possibly can double their imports from Mexico as an alternate source and fight back the threat given by China to halt the supply of raw materials specifically rare earth metals. As The People’s Daily, Communist party mouthpiece warns “ Will rare earths become China’s counter-weapon against unprovoked suppression of the US? The answer is not mysterious.”

Bangladesh, Thailand,  and Philippines:

These Asian economies with their cheap labor and low cost of production can be the major source of  attraction for  US. Bangladesh with its cotton riches despite of lacking infrastructure can benefit largely from this hullabaloo. As its apparel market has boosted recently and who knows we might soon get to see “Made in Bangladesh” more often than  “Made in China” in US’s goods market.

Similarly agricultural imports from China being replaced by Thailand and Philippines.

Iran and Russia:

Uncertain global economic situation have always been linked to increased crude oil prices. China being the major importer of America’s crude oil might shift towards Iran or Russia as its economic ally. This might be equal to breaking some international laws but who cares as long it’s a war.