The U.S.-China trade war fired its first shot in March this year. Half a year has passed, and the heat of the topic has slowly dissipated.
However, just this Monday, September 24, the U.S. announced that $200 billion in tariffs officially took effect, bringing the U.S.-China trade war back into the spotlight.
The Chinese side also canceled the trade negotiations originally scheduled for Washington. Faced with the aggressive posture of the United States, it seems China has adopted tough countermeasures and is no longer seeking negotiations for compromise.
For those studying in the U.S. or hoping to study in the U.S., are you feeling torn?
1. America's Only Trade Surplus—Education
For the United States, long plagued by trade deficits, education is its only surplus sector.
The spending of international students in the U.S. has always been counted as U.S. exports, because this money flows from other countries into the United States.
China is one of the main financial sources. In 2017, international students contributed $40 billion in exports to the U.S., while by comparison, Americans studying abroad spent about $8 billion overseas, giving the U.S. a surplus of nearly $32 billion in higher education.
Facing such a surplus, China's education sector certainly cannot afford to slack off. Even Jack Ma, the founder of Alibaba, has said that after stepping down, he wants to dedicate more energy to education, which he has long been concerned about.
The U.S.-China trade war has entered a completely new phase, and the education battle behind it has just begun.
2. America's Coercive Tactic—Restricting Student Visas
Due to China's tough stance, Trump had to use the issue of Chinese student visas to pressure China.
Trump proposed: To prevent foreigners, especially Chinese, from "stealing" American intellectual property, the number of students coming to the U.S. to study degrees in science, engineering, mathematics, and technology should be limited.
Compared to 2016, the U.S. reduced student visas by about 17% in 2017, and compared to 2015, international student visas in 2017 decreased by nearly 40%.
Surely students have already received numerous visa updates emails from universities. The move to "restrict international student visas" as a countermeasure to the trade deficit with China will make American universities and applicants the direct victims.
3. China's Countermeasure—Yuan Depreciation
China's foreign trade accounts for only 18% of its GDP, a drop of two-thirds from 12 years ago. And exports to the U.S. make up only a quarter of that proportion.
China's emphasis on U.S. import data is meant to show that the China-U.S. trade war has limited impact on China.
However, the trade war still has serious effects on China. To make the yuan more competitive in international trade, the central bank has allowed the yuan to depreciate continuously.
The depreciation of the yuan increases the spending pressure on international students overseas. According to the College Board, annual tuition for U.S. public universities is generally around $30,000, and for private universities, about $45,000. The exchange rate depreciation can cost students tens of thousands of yuan.
Watching the exchange rate soar from 6.2 to 6.9 is heartbreaking, not to mention that just days ago, the tuition fees of major U.S. universities rose by another 3-4%.
4. Sincere Advice
Under Trump's administration, visa policies are turbulent, and the escalating U.S.-China trade war has brought some instability to studying in the U.S.
Are you, who is preparing for the new round of applications, feeling a bit panicked? Don't worry, with CheersYou（清柚教育） here, we'll help you capture all the changes in study-abroad information.
Have questions about the application process? Come to CheersYou（清柚教育） for a consultation!
