Research on the Manufacturing Development in China under the US-China Trade War

Abstract

This paper aims to analyze the current condition of high technology manufacturing in China in the context of a trade war between it and the U.S. Since China and the U.S. are the largest two manufacturing countries and also the highest GDP countries, the paper presents the trend of the manufacturing within these two countries and their comparative advantage. While Chinese manufacturing wins by large scale and low production cost, U.S. manufacturing wins by its control of high technology which is more valuable to manufacturing growth today. Given the ever-intense rivalry between China and the U.S. on high-end technology manufacturing, the paper then discusses the resulted difficulty faced by China as it is experiencing a high-tech supply shortage and the solution China has used to conquer the obstacles. The solution China employed has shown its effectiveness as several high-end manufacturing areas have achieved great progress in the year after the solution was imposed. The content of the paper is meaningful to the study of the relationship between China and the U.S. and the continuing growth of Chinese manufacturing as it records the biggest tension between the two countries and the resolution China takes to save its manufacturing from a broken technology supply chain.