Abstract
Over one and a half years, the attention of investors around the world has been focused on the confrontation of the two largest economies in the world. The aggravation of trade relations between the United States and China was one of the main reasons for the correction of world markets and the general risk aversion. The shifts and changes triggered by this conflict require more considerable attention since they bring about fundamental transformations of the landscape of international relations and the practice of economic interaction not only in relation to the parties to the conflict but also for the whole world, this conflict is not just a confrontation between the two strongest economies of the world, but also a turning point for updating the configuration of the world order. This article aims to analyze the reactions of US and Chinese stock exchanges in connection with the unfolding of a trade conflict between the two countries and assess the level of adaptability of two economies to external challenges. The methodology of this study bases on the fundamentals of the general economic theory and the general theory of conflict resolution - the research bases on the comparative method. The significant elements composing the scholars' analysis of political reality underlying the conflict is presented as well as stock exchanges’ dynamic through the development of the confrontation. The main conclusion of this study was that this conflict is not just a confrontation between the two strongest economies of the world, but also a turning point for updating the configuration of the world order.
Highlights
With the change of administration in the United States in 2017, everyone closely followed the development of communication between two active global players – the United States of America and the People's Republic of China
The problem is that the United States, because of its policy, needs to fill somehow the markets that were previously supplied with goods from China
It is essential to note that strict protectionism against China has a severe impact on global business as a whole, China will suffer most from a trade war, many European companies have already begun to think about transferring production to other countries (Vietnam, India, etc.), so that due to high duties not to lose the American market
Summary
With the change of administration in the United States in 2017, everyone closely followed the development of communication between two active global players – the United States of America and the People's Republic of China. Starting from a positive context, the communication of the leaders of the two countries, Donald Trump and Chairman Xi Jinping, today represents not just an economic confrontation, but a clash of two sustainable economic models, one of which is the leader of the economic system of the whole world, and the other has the potential to become equal to it This is the first large-scale economic confrontation between the United States and China for the first time in the history of US – China relations, the consequences of which are currently unpredictable due to a rapidly changing conjuncture
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
