Financial Conflict Between China and the United States

The following sample essay on  Financial Conflict Between China and the United States tells about the trade war between the two largest countries in the world and its consequences for the countries.

The recent trade war between the world’s two biggest economies, China and US that is getting honed is a hot potato over the world. Even though this trade war is the financial clash between China and US, but the tariff will hurt non-Chinese and non-US companies as well.

President Donald Trump turns the trade war to the tariff war that hurting China for unfair trade practices. China does not have much room left to keep responding to the tit for tat. Tariffs paid by the importer and it will be impacted to the cost for the manufacturer. This China-US trade war will give a global effect that impacting on people and their development. This statement can be strengthened by the argument from Marquardt (2009) who explained that significant events like trade war in every country can be provoked locally and may impact globally or influences locally from global sources.

One of the possible consequences for the US or Chinese producers is to move some of their production outside of the US or China. Both countries will lose earning and impacts to both economic and leads the global economic problem that based on the global supply chain and globalizes production locations. Today, multinational companies made their product from part source all over the world and manufacturing them in multiple countries.

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Because the supply chain impacted, intermediate goods such as part and component for the final product will pricier. These phenomena will affect global change and will influence global human resource management as Marquardt (2009) explained that global change is critical to human development. This essay expects to a deeper profound comprehension in regards to the effects of China-US trade war in global human resource management (GHRM).

Trade War and Supply Chains

Trade war happens when two or more countries increase the import tariff for each other, and the trade war between China and US will turn into the tariff war obviously. This trade war has an impact to the global supply chain Organizations or companies which affected by the execution of unfair tariffs could be compelled to migrate their processing plants or distribution centers to considerable social and budgetary cost (Berman, 2018). A supply chain is a batch of associations that cooperates in the upstream and downstream movement of items and administration to give completed items to the client that have a purpose to enhance the long-haul performance of the individual organizations and the supply chain overall (Vereecke, 2012). So to maintain the performance, a multinational company should make a strategy to avoid the loss caused by the trade war, because not only the US and Chinese companies that will face the impact of China-US trade war, multinational companies also will be impacted by this political chaos.

Some multinational companies located in the US and China will try to move out in order to avoid this problem, as written by Bland (2018) that production line proprietors and American purchasers stated that the China-US trade war will heighten the companies to move out to other counties. For the real example, even though China is the world’s greatest exporter of producing goods, but some production plant started to move out to other developing nations aims to look for less expensive wages and fence against the political and financial hazard when they only depend on one country (Bland, 2018). This phenomenon will give us proof and leads us to think that the China-US trade war will be impacted to the global supply chain. This argument strengthens the argument from Berman (2018) that explained about this trade war considerable affect the global trade that related to the global supply chain tasks including cross-border organization which role in global trade export-import. Berman (2018) also stated that a trade war among two greatest economies over the world US and China could have an especially negative effect on the supply chain that becomes a key point of globally export-import.

Supply Chains and Human Resource Management (HRM)

As stated before, China-US trade war will affect not only US and China companies, because trade war between these two countries gives any impact to the world in many aspects, such as global supply chain, global economy, global trade, etc. It is evident that trade war leads to the global development for every company in the world. The patterns of global development will impact the business and HR strategies, particularly among multinational companies (Global Economic Trends Influence HR Strategies, 2014). The economic problem and financial conditions are a key driver of international human resource trends, economic growth may mean for employees and HR experts because economic growth has driven the companies to legitimate their labor wary contracting and moving employment to reduce the cost (Global Economic Trends Influence HR Strategies, 2014).

In order to reduce the cost, some companies decided to move their manufacture plant to other countries which provide the lowest cost for the production. But, moving out the companies to others country will take a long time to make the production performance steady in a new place because companies need to build new associations with industrial facilities, suppliers and governments, besides it is hard to do when the laws are frequently vague and labor and environmental standards remiss (Bland, 2018). Extra burden for the enterprise when they put resources into training and development program because the training would incorporate specialized abilities as well as other critical soft skills such as cross-cultural affectability, composed relational abilities, public speaking and leadership advancement (Global Economic Trends Influence HR Strategies, 2014). When the owner decided to move their companies to other countries, they need better management for their organization, especially for the multinational companies. For better management of the supply chains to make creating competitive advantage, applying the practices of HRM to supply chain is really helpful (Vereecke, 2012).

Global Human Resource Management (GHRM)

Global Human Resource Management (GHRM) is tied in with comprehension, exploring, applying and reexamining all HR actions in their inward and outer settings as they affect the way toward managing HR in business all through the worldwide condition to upgrade the experience of various partners, including investors, clients, workers, accomplices, suppliers, surrounding condition and society (Briscoe & Schuler, 2004). The external environmental included the competition, government policy, technology, market trends, and economic factors. On the other hand, internal environmental included culture, structure, policies, and skills. Both external and internal environmental relate to the business strategy through HRM. GHRM generally used by multinational companies to run their global business that operates across the national boundaries. Because of the business running across the world, it surely that GHRM are related to the cross-cultural. Set up HRM practices extend from building up an HR system and enlisting, choosing, creating and compensating the workforce, to change the management and work relations (Vereecke, 2012).

China-US Trade War and GHRM

The effects of the trade war among China and US in terms of supply chains provided several effects on GHRM. GHRM related to the expatriate management that gives some challenges to GHRM, such as differences of labor markets, differences in culture, differences in legal systems and differences in economic systems. The first one is differences of labor markets can be related to the availability of skills, difference in habits and working behavior in different countries. Secondly, the difference in culture is really invisible, but sometimes it can be felt because culture is like an iceberg and each country have their own culture. Third, a difference in the legal system, it refers to the policy and regulation of each country related to the HR and the way how contracts of employment are set up. Last but not least is differences in the economic system that have an impact on GHRM as well.

As mentioned before that applying the HR strategy for supply chain is really helpful, HR strategy includes creating the adaptable frameworks of HR best practice that advance the firm’s business strategy in order to makes some gradually broader advantages, such as reflecting the supply chain strategy, attributes and partners when building up the HR system, utilizing HR framework, and the last is working together with the production network accomplices to create and facilitate HR framework for the inventory network all in all (Vereecke, 2012). There is some human resource management practice that can be implemented to improve the supply chain which are training, performance appraisal and planning & recruitment. How to assess the global mindset is important for the recruitment process in GHRM. There are some ways to know the potential or candidates have a global mindset or not, first look into the concepts of his/her self-esteem, self-confidence and mental well-being.

The second point is the most important which is the ability to connect and communicate or simply the ability of their language. The third one is the ability to understand or appreciate foreign cultures because work in multinational firms will always deal with the cultural diversity among the members. Related to the cultural diversity, the tolerance for frustrations and ability to settle in well in strange cultural environments are needed. HR training activities aim to the specific needs that arise from certain expatriate postings. In GHRM, the multinational company probably should create different performance assessment tools for each company because one performance tools might not sufficiently applicable to all nations. Despite the relationship between HR and supply chains, the salary and benefits also important for GHRM.

On the other hand, as times go by the trade war China-US generates the globalization and the technology develops, it impacted the GHRM in different ways. Technology has totally re-imagined the job of HR everywhere throughout the world and it has changed about each part of HR, appropriate from sourcing to performance management (6 Technological Trends that Redefine Human Resource Management, n.d.). Within the technological development, today’s work can be done from any place and whenever they are. 6 Technological Trends that Redefine Human Resource Management, (n.d.) indicated that there are two technological change impacts in different ways, firstly, it would offer various instruments or tools to more readily manage and connect with the ability in associations and the second is assisting HR chiefs with shifting their concentration from managing the workforce in driving benefits to the organization.

The technology on HR will help organization to run the business in multinational through electronic human resource management (e-HRM) with HRM software and industry such as big data power organization that help to make decisions, mobile apps that give the mobilization process, social media as a powerful tool for recruitment, and last but not least cloud change the game that used to archived and organized every documents related to the HR.

The previous explanation can be used as a reference to analyze the effect of China-US trade war in GHRM in term of high-technology firms. In case the multinational high-technology company in China wants to move out of China to other developing countries, it will be a disaster. The first problem is about the labor markets, there is no guarantee whether the skills needed can be fulfilled by the local workers or not. For the example, the ability of workload for Chinese workers will not same with other countries workers, so it will influence the job analysis and job assignment.

When companies move out from the origin nations, they should remake most of their system, because not all countries can apply the same system because of the diversity. The most difficult problem is culture, the working culture in China and other countries are different, it will influence the production output quantity and quality. Even though the e-HRM can be used for the multinational companies, but it will not really help for the production output. It is possible to create new companies cross-broad, but it will take a long time to stabilize the performance. It will be more convenient to stay in the origin place than try to establish the new company in order to reduce the cost because if they move out from the origin nations, they might spend more money for training and development even though they can spend less for the production cost and labor cost.


In conclusion, China-US trade war will affect GHRM because of the unreasonable tariffs that will influence the business over the world and of course influences to the global supply chain that forced some companies to move out in order to avoid loss if they stay in the country that has financial and political hazards. When the number of companies which operate their country origin is increased, the impact on innumerable industry functions turns out to be more noticeable (Briscoe & Schuler, 2004). Moreover, the impact of China-US trade war also can be felt in the technology sector and the globalization that should be associated with GHRM in order to make a successful business at the worldwide level. As technological advancement, it makes associations to direct business over the world at ease, worldwide development has turned into an expanding reality, in like manner, it’s basic for these multinational firms to have the privilege HRM programming setup that is fit for serving representative working around the world (What is Global Human Resource Management, n.d.).

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Financial Conflict Between China and the United States. (2019, Dec 15). Retrieved from

Financial Conflict Between China and the United States
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