Positions of USA economic diplomacy in the trade war with China

Abstract

The rapid growth of the Chinese economy over the past decade has largely shaken the US monopoly as the world’s biggest geo-economic hegemon. Internal factors coupled with the desire to prove the economic dominance of the United States to the world pushed D. Trump to start a trade and economic conflict. The increase in duties on imported goods from China created a dangerous situation in which the ensuing mirror measures to protect their market led to deterioration in the trade balance between the countries, as well as to the complexity of global production chains and, as a result, a decline in global economic growth. At the same time, China’s economic diplomacy alongside with the United States’ active political manipulation played a positive role in regulating the confrontation in many ways. Meanwhile, the new US president still retains part of the duties on goods from China, which may entail a hidden threat of furthering confrontation between the countries. The novelty of the situation is that the United States, having violated the accepted rules of trade, has began to be guided only by its own national interests, which can create a precedent and give rise to similar situations on a narrow local scale, followed by the greatly impinged future shape of world trade.