Understanding Sino–US Trade War: An American Government Perspective

Lakhwinder K Dhillon,Ravneet S Bhandari,Sanjeev Bansal

doi:10.18639/merj.2019.958453

Abstract

To comprehend Sino–US trade relations, this research article decrypts the trade relations among China and the United States from the American government perspective (Presidency of Donald Trump). The American government claims that the Chinese government's high import levies and subsidies to Chinese firms cause the Sino–US trade war, bringing about economic misfortunes in the United States. The American government thus contends that forcing high levies on Chinese products (imports) can be corrective measures for Chinese governments' actions. This research article discovers that the American administration overestimates the deficits. Measures for diminishing China's imports cannot raise the American employment rate; on the contrary, China furnishes the United States with high caliber and low-cost products and services. Although China is one of the top investors for the United States, Chinese capitalists tend to capitalize the surplus by investing in American ventures and bonds. However, American administration limits Chinese capitals because of security concerns supported by various other nations (i.e., France, Germany, Britain, Australia, the European Union, Australia, Canada, and Japan). The fear for Chinese capitalists due to China's moving up to the high end of the value chain is an outcome of economic advancement. Consequently, the two nations should restrategize Sino–US trade patterns by developing trade and economic co-ordination by means of trade arrangements.

Highlights

In the first quarter of 2018, the American government (Presidency of Donald Trump) set off a trade struggle with China by wanting to impose a 25% duty on imports from China from mid of 2018
The increasing trade struggle has initiated and trade talks between the two nations have been in advancement only after assembly between the Chinese government and American government at G-20 Summit on December 2018
All these American and Chinese trade measures have created difficulties for the regular trade co-ordination among the United States and China, which resulted a negative shadow on the current worldwide trade framework (Mistry and Durani, 2019)

Summary

INTRODUCTION

In the first quarter of 2018, the American government (Presidency of Donald Trump) set off a trade struggle with China by wanting to impose a 25% duty on imports from China from mid of 2018. The continuous Sino–US exchange strife keeps on increasing, on the grounds that the American government intends to regulate the Sino–US trade unevenness. In this manner, to understand the trade irregularity among China and the United States, it is incredibly imperative to estimate the future potential trade clashes between the two nations (Lee and Yi, 2018). To comprehend Sino–US exchange relations and the reasons for the contention, this research article attempted to assess the Sino–US trade unevenness from the point of view of the American government (Presidency of Donald Trump) and dissecting the legitimacy of its perspectives and contentions (Guo et al, 2018). Followed by the segment that examines the basic reasons for the Sino–US trade clashes and assesses the legitimacy of American government allegations that China’s trade strategies are out of line, the last segment of the paper provides proofs for China’s escalating contribution in global value chain over the long haul (Li et al, 2018)

AMERICAN GOVERNMENT PERSPECTIVE ON SINO–US TRADE

IMPLICATIONS OF SINO–US TRADE IMBALANCE ON AMERICAN ECONOMY

RELATIVE ADVANTAGE AND SINO–US TRADE IMBALANCE

CHINA’S UPGRADING POSITION IN GLOBAL VALUE CHAIN

Findings

CO-ORDINATION IS THE SOLUTION FOR THE SINO–US TRADE IMBALANCE IRREGULARITY