NEW PROTECTIONISM IN TRADE RELATIONS BETWEEN US AND CHINA
Keywords:
United States, China, trade conflict, tariffs, economic effectsAbstract
Increasing economic power of China during the recent decades alongside with declining share of the United States in the global production and international trade in the beginning of the 21st century has led to a change in the geopolitical landscape of the world and emergence of the "Group of Two", or simply G2. The US officials state that China is pursuing unfair trade policies, exploiting the benefits of trade liberalization and WTO membership, while at the same time keeping its domestic market safeguarded against foreign competition by providing subsidies and facilitating export through currency devaluation. The US accuses China of stealing scientific and technical knowledge and technologies from the American companies, violating the intellectual property rights and neglecting environmental protection requirements. Since 2018 the United States and China have imposed various restrictive measures on trade flows between the two countries, of which increases in tariffs have been most prominent. Tariff increases by the United States on Chinese imports led to a quick response of China, also raising its tariffs on American imports. This paper analyzes the economics of the trade conflict, discussing the economic background of the trade conflict, providing an overview of the different measures taken and exploring the economic effects.
References
Bergsten, C.F. (2018).China and the United States: The Contest for Global Economic Leadership. China & World Economy, 26(5), 12-37
Bui, Q., & Irwin, N. (2018). How Much Will the Trade War Cost a Typical American Family? Around $60 (So Far) [online], Available at: https://www.nytimes.com/interactive/2018/07/12/upshot/trade-war-cost-families.html
Chong, T.T.L., & Li, X. (2019). Understanding the China–US trade war: causes, economic impact, and the worst-case scenario. Economic and Political Studies, 7(2), 185-202
Dollar, D. (2021, April 26). What does Biden’s first 100 days tell us about his approach to China. Brookings.https://www.brookings.edu/ blog/fixgov/2021/04/26/what-does-bidens-first-100-days-tell-us-about-his-approach-to-china/
Dolgov, S.I., & Savinov, Y.A. (2018). International trade: USA on the warpath. Russian Foreign Economic Bulletin, (9), 7- 20
Flaaen, A., & Pierce, J. (2019). Disentangling the Effects of the 2018-2019 Tariffs on a Globally Connected U.S. Manufacturing Sector. Finance and Economics Discussion Series 2019-086. Washington: Board of Governors of the Federal Reserve System. https://doi. org/10.17016/FEDS.2019.086.
Holland, B., & Sam, C. A (2019). $600 Billion Bill: Counting the Global Cost of the U.S.-China Trade War [online], Available at: https://www.bloomberg.com/graphics/2019-uschina-trade-war-economic-fallout/
Kelly, E., & McCabe, J. (2021, April 1). Biden unveils historic $325B research and innovation plan. Science Business. https:// sciencebusiness.net/news/biden-unveils-historic-325b-research-and-innovation-plan.
The White House. (2021). Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers. https://www. whitehouse.gov/briefing-room/presidential-actions/2021/01/25/executive-order-on-ensuring-the-future-is-made-in-all-of-america-byall-of-americas-workers/
Vinogradov, A.O., Salitsky, A.I., Semenova, N.K. (2019). US-China Economic Confrontation: Ideology, Chronology, Meaning. Vestnik RUDN. International Relations, 19(1), 35-46
Wang, Y. (2018). Last warning: what US Hi-Tech companies lose in trade war with China [online], Available at: https://www.forbes.ru/tehnologii/360641-posledneepreduprezhdenie-chto-poteryayut-tehnologicheskie-kompanii-ssha-v
