The US–China Trade War and Hegemonic Competition

Abstract

Since March 2018 the US–China trade conflict has escalated from a tariff war to a technology war. The strategic competition between the two giants and the direction of their trade war will reshape the world order of the future. The questions the chapter explores include what major goals does the US have in the trade war against China? What does the trade conflict imply for the hegemonic competition between the US and China? How should one evaluate the influence of the domestic structural changes within both countries on the trade conflict? Will a possible deal stop the spiralling of the strategic hegemonic competition between the two major powers? By answering these questions, the chapter offers an analysis of the political and economic driving forces behind the US–China trade war and the factors affecting the consequences of the negotiations. First it is argued that the trade frictions have deep roots in the restructuring of domestic politics in the two countries. Second, while extreme thoughts define the US–China relationship from the perspectives of ideology and strategic rivalry, economic interdependence and shared stakes set the ground for negotiation and possible compromise between the two countries. Third, rebuilding political trust will be the key to dealing with strategic rivalry and avoiding a cold war between China and the US.