The trade war between China and USA has been going on for months, with plenty of action from both sides. The trade war has resulted in much anxiety around the war. With the latest on the ban on Huawei, and subsequent termination of business from Google and many chipmakers.
Here is an alternate understanding of what the trade war is about and what both countries are doing.
Understanding Trade War In An Alternate Reality – The Toy War
American boy and Chinese boy are neighbours in the little community of Sol III. They are the richest families in the community and spent much time playing together and sharing their toys.
One fine day, Chinese boy’s father gave him a cool new toy that is made from the Sol III toy factory. Chinese boy brought a new toy over to the house of American boy.
A brand new toy so fun that American boy started to feel that he has been sharing too much of his toys with Chinese boy aka feeling jealous.
As does young boys behave, American boy went into a tantrum.
In his tantrum, he smashed Chinese boy’s new toy. Chinese boy, angered by American boy’s actions, took a piece a of cake lying around and smashed it into American boy’s face.
American boy took another piece of cake and smashed it onto Chinese boy’s face.
In retaliation, Chinese boy started to break the toys of American boy as well.
The breaking of each other’s toys continued until the disciplinarian mother came around.
But guess what, the fathers of both boys worked in the same toy factory. And nope, both fathers did not replace the broken toys the boys broke.
Over-simplified vs Over-complicated
Above, we have the over-simplified version of the trade war. Up next, we have the over-complicated version, where we also speak about the semiconductors that stopped their services to Huawei as well as the semiconductor IP provider that all the semiconductors companies in mention has worked with.