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

Article Information

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

Authors: Muhammad Ali Baig, Dost Muhammad Barrech, Talat Shabbir

HEC Recognition History

Category	From	To
Y	2024-10-01	2025-12-31
Y	2023-07-01	2024-09-30

Publisher: Balochistan University of Information Technology, Engineering and Management Sciences,Quetta

Country: Pakistan

Year: 2023

Volume: 2

Issue: 1

Language: English

DOI: 10.61732/bj.v2i1.41

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.

Disclaimer: The following sections are produced through an intensive multi-stage analytical pipeline developed by DefinePK, utilizing advanced natural-language processing, domain-specific knowledge models, and automated cross-referencing systems. Despite the rigor and computational effort involved, the generated summary may still contain inaccuracies or incomplete interpretations. Users are strongly advised to verify all critical information against the original paper and its authoritative sources.

Research Objective

To probe the strategic context of the US-China Trade War, its global implications, its continuity under the Biden administration, and to tentatively provide a way forward for both great powers.

Methodology

The article employs a qualitative research approach, analyzing historical precedents, geopolitical theories, and economic data to examine the US-China trade war. It draws upon scholarly articles, books, and news reports to support its arguments.

Methodology Flowchart

                        graph TD;
    A["Analysis of Strategic Context and Historical Precedents"] --> B["Identification of Motivations for US-China Trade War"];
    B --> C["Examination of Trump Administration's Policies"];
    C --> D["Assessment of Global Economic and Strategic Implications"];
    D --> E["Analysis of Biden Administration's Approach"];
    E --> F["Development of Tentative Way Forward"];
    F --> G["Conclusion on Hard Implications of Soft War"];

Discussion

The paper argues that the US-China trade war, despite being a "soft war" waged through economic means, has "hard implications" globally. It contextualizes the conflict within the broader framework of great power politics and grand strategy, drawing parallels with historical trade disputes. The authors discuss the motivations behind the US actions, including trade deficits, intellectual property theft, and China's "Made in China 2025" initiative. They also explore the impact on various countries and international organizations, highlighting the potential for global economic recession and increased geopolitical rivalry. The continuity of the trade war under the Biden administration is noted, with a critique of its perceived irrational path.

Key Findings

The US-China trade war, initiated under the Trump administration, has significant global economic and strategic implications. It is characterized by protectionist policies, accusations of unfair trade practices, and a growing strategic distrust between the two nations. The trade war has also led to shifts in global economic alliances and has continued under the Biden administration.

Conclusion

The US-China Trade War is an irrational act with profound negative consequences for the global economy, promoting economic nationalism and undermining multilateral trade. Both nations, as rational actors, should prioritize negotiation and cooperation over protectionism and economic rivalry. The authors suggest that a shift towards a win-win approach, adherence to international economic principles, and a reduction in trade deficits are crucial for de-escalating the conflict and fostering global economic stability.

Fact Check

* The US trade deficit with China reached almost 345.6 billion USD in 2019. (Confirmed in text)
* In June 2018, the Trump administration imposed a 10 percent tariff on 200 billion USD worth of Chinese products. (Confirmed in text)
* China retaliated by imposing a 25 percent tariff on 50 billion USD worth of American products. (Confirmed in text)

Mind Map

Loading PDF...

Loading Statistics...

DefinePK

Select Collection