Sino-American Clash of Hegemony: An Analysis of <i>US-China Trade War</i>

Abstract

In economic history, 2018 will be remembered as the year that the US started a trade war with China. The longtime leading hegemony is now embarking with the rising hegemony in one of the largest trade wars in economic history to date. US-China economic ties have expanded substantially since China began reforming its economy and liberalizing its trade regime in the late 1970s. According to the INVESTOPEDIA DICTIONARY, a trade war is a side effect of protectionism that occurs when one country (Country A) raises tariffs on another country's (Country B) imports in retaliation for Country B raising tariffs on Country A's imports. As it escalates, a trade war reduces international trade. China and the United States are engaged in a trade war as each country continues to dispute tariffs placed on goods traded between them. US President Donald Trump had promised in his campaign to fix China's longtime abuse of the broken international system and unfair practices (https://democracyjournal.org/magazine/52/trade-parade-of-broken-promises/). The economic disputes occurred before China's entry to the World Trade Organization but former Presidents George H. W. Bush, Bill Clinton, George W. Bush, and Barack Obama all failed to solve the problems. In April 2018, the United States filed a request for consultation to the World Trade Organization in regard to concerns that China was violating intellectual property rights. In adding various tariffs, the US administration is relying partly on Section 301 of the Trade Act of 1974 to prevent what it calls unfair trade practices and theft of intellectual property (https://cen.acs.org/policy/intellectual-property/US-files-complaint-over-Chinas/96/i14). This gives the president the authority to unilaterally impose fines or other penalties on a trading partner if it is deemed to be unfairly harming US business interests, especially if it violated international trade agreements. In August 2017, the US opened a formal investigation into attacks on the intellectual property of the US and its allies, which cost the US

A Comparative Study on the Influencing Factors of Sino-US Trade Transactions from a Longitudinal Perspective Based on Principal Component Analysis

“…Therefore, he put forward the suggestion that China should improve its trade structure and improve its foreign investment policy. Kammogne Josiane Sider [4], on the other hand, points out that the main reason for the trade war between China and the US is the trade imbalance and competition for global economic status, and proposes that it is necessary for the two countries to organize round-table negotiations to redefine the rights and obligations of each party. Jihong Jin and Michael Steffens [5] analyzed the causes of the trade imbalance between China and the US by taking the electronics industry as an example, and the authors pointing out that merely observing and analyzing the factors at the most macro level of the overall trade balance is not enough to paint a full picture.…”

How US-China Trade War Affect International Study Market

“…The research focuses on a few significant factors such as Increased competitiveness of Chinese firms, import penetration, China's WTO entry, and its compliance, and then give a proper explanation about why the trade war would happen and why it is inevitable. Both quantitative and qualitative research methods were utilized in the research, including the interview with staff in the US's financial department and the comparative data table of the GDP growth [2]. Chen investigated the significant difference between the political ideology of China and the US and summarised the background the direct factors that led the ideology to evolve to the current appearance.…”