Imminent Trade War Between United States and China

This essay discusses the imminent trade war between the United States and China, focusing on the reasons behind the conflict and its impact on the global economy.

Running head: CHINESE SOCIETY
Chinese Society
Name of the Student
Name of the University
Author Note

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The aim of the following essay will put its light on the imminent trade war between the
two economic super powers of the world- United States of America and China. In the recent
years, China has evolved as one of the growing powers by improving in technology in the best
ways it can. Therefore, their attempts have been consistent to maintain the economic stability all
over the world. The attempts of USA have been marred by China in some cases and this has been
the main reason for the upcoming trade war between these two countries. It will impact on the
global economy as well.
In the last few years, attempts of China have been aimed at establishing itself as a
power without depending on the assistance from United States. The main course of disagreement
these two countries went on regarding the telecommunication giants of China, Huawei. United
States has been very much aggressive in trying to fore China to legislate some changes in the
trade relationship between these countries (Jun, 2019). The negotiation on the US- China trade
agreement had halted because China had insisted on rewriting the draft agreement. According to
the critics, this could cause great problems for Chinese companies when they will operate in
different countries in Europe or the American continent. It seems from the opinion post that
China has always been somewhat reluctant to meet the demands of United States in this trade
scenario. The US administration led by Donald Trump might have miscalculated the entire
equation about the trade agreements (Che et al., 2016).
As the main issue is regarding the Huawei Company of China, United States has
blacklisted this company in their trade list (Jun, 2019). The company has definitely suffered its
consequences as well. United States has completely cut off the supply line of technologies to this
company. Therefore, it has resulted in huge losses for the company. Trade experts believe that it
will put the trade relationship between China and United States in difficult conditions in the

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future. China wanted to protect Huawei from the extensive campaigns of the United States.
United States has gained the superpower status in the global economy and this has given them
the utmost confidence to go into this trade war against China (Jun, 2019). The conflict arises
when China wanted to protect Huawei from economic problems. The critics have always stressed
on the issue that United States is the largest producer and manufacturer in the world. They have
an overall consumer market around 1.4 billion people (Che et al., 2016). This decision of China
to rewrite the draft agreement will seriously cause tremendous disruption in the global economy
and supply chains (Steinberg & OHanlon, 2014).
The experts have discussed this issue by highlighting that it will be a problematic thing
for China to overcome the difficulties in global economy. In fact, the successful trade agreement
between United States and China had been aimed at particularly because it would benefit the
Trump administration in the presidential election of next year. The advantage of China is the fact
that they do not import several things from the United States (Jun, 2019). Therefore, this will
give them a position of self-reliance. Experts believe it is a good and positive thing for the
country (Steinberg & OHanlon, 2014). One economic perspective can be highlighted in this
situation. The recent depreciation against the US dollar by renminbi has been an evident issue.
On the contrary, People’s Bank of China wanted to maintain their exchange-rate stability in the
country (Che et al., 2016). Evidently, China would like to carry on with this intent of restraint for
the coming times. The trade war has been intense so China might have been forced to take some
short-term legislative action (Blackwill & Tellis, 2015).
In this juncture, it is expected that China will surely try to keep up some of the practices
that would maintain their social integrity. The impacts will be both direct and indirect in the long
term scenario (Jun, 2019). China would like to support their economic growth and development

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in the near future (Caporale, Sova & Sova, 2015). This would ensure social stability in the future
as well. Indirectly, China would like to avoid further problems or disruptions of economy in the
global markets. On the contrary, it will probably worsen the scenario and deny future economic
agreements between these two countries. China is not ready currently to absorb the structural
reforms within their economy (Jun, 2019). If China wants to continue with their concept of an
open economy, it will create many problems as well. As per the thinking progress of the leaders
of China, China will continue to be the global leaders in contributing to the growth of global
economy. In fact, China has thus been trying to protect the stability of the global economy
(Harding, 2015). China has contributed to the growth of the global economy and this will
probably continue. In fact, China has protested against the stance of United States regarding the
open economy.
Several critics have also discussed over the fact that China will have to implement some
structural reforms so they can improve their technology (Jun, 2019). Apart from that they will
have to protect their individual rights of property and set up a good capital market so they can
improvise their market share for future betterment options (Lanteigne, 2015). Thus China will be
able to innovate new things based on their technology and progress with entrepreneurship
initiatives. This is how their dependence on US will go on to decrease.
In the concluding section, it can be stated that this opinion post in the South China
Morning post has helped the readers largely to understand the causes an future implications of
the rising tensions between United States and China. This is how China will be able to make the
progress in the field of science and technology and other aspects. China must also look to protect
the individual rights and work on to grow their economy.

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References and Bibliography
Blackwill, R. D., & Tellis, A. J. (2015). Revising US grand strategy toward China. Council on
Foreign Relations.
Caporale, G. M., Sova, A., & Sova, R. (2015). Trade flows and trade specialisation: The case of
China. China Economic Review, 34, 261-273.
Che, Y., Lu, Y., Pierce, J. R., Schott, P. K., & Tao, Z. (2016). Does trade liberalization with
China influence US elections?(No. w22178). National Bureau of Economic Research.
Harding, H. (2015). Has US China policy failed?. The Washington Quarterly, 38(3), 95-122.
Jensen, J. B., Quinn, D. P., & Weymouth, S. (2015). The influence of firm global supply chains
and foreign currency undervaluations on US trade disputes. International
Organization, 69(4), 913-947.
Jun, Z. (2019). How the US misjudged China’s commitment to stability as weakness. Retrieved
from https://www.scmp.com/comment/opinion/article/3012983/how-trump-misjudged-
chinas-commitment-economic-stability-and
Lanteigne, M. (2015). Chinese foreign policy: an introduction. Routledge.
Steinberg, J., & OHanlon, M. E. (2014). Strategic reassurance and resolve: US-China relations
in the twenty-first century. Princeton University Press.