The US-China Trade War: Hard Implications of a Soft War

Abstract

The end of the Cold War reinforced the term globalisation, where states became more intertwined economically, tilted towards consolidation of their economic ties. However, great power politics kept in gaining buoyancy in the international relations; resultantly, the United States initiated and later amplified its trade with China. Hitherto, the latter became the second largest trade partner of the former. During the last couple of years, such ties between the two witnessed a turbulent trajectory. However, America under Trump administration, accused China of raping the US economy, being an unfair trade partner, and spattered of becoming a currency manipulator. To minimize and equalize the trade deficit that reached almost 345.6 billion USD in 2019, the Trump administration initiated a unique trade war between the two great economies; consequently, such policy decisions remained one of the hottest issues in international politics. The Trump Doctrine hinged upon America First; and the imposition of strict tariffs on numerous Chinese products, surprised the international commentators and economists. The article intends to probe the strategic context of the US-China Trade War and the implications of such on a global level. It also explores continuity of the same under the Biden administration. It tentatively provided a way forward for both great powers as well.