New Cold War in Trade Between China and USA

Running Head: NEW COLD WAR IN TRADE BETWEEN CHINA AND USA 1
SOCIOLOGY
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NEW COLD WAR IN TRADE BETWEEN CHINA AND USA 2
INTRODUCTION
Recent trends have indicated the possibility of the new cold war between China and the United
States. China and the United States of America are competing on various aspects ranging from
the movie industry, lunar exploration, the army, weapons, and trade (Brooks & Wohlforth,
2016). This essay shall focus on the cold war between the two countries as far as trade is
concerned. The United States of America has raised various claims that China is using dubious
means to achieve its way to the top through the stolen technology from Canada and Sweden.
Both nations strive to be the best economically, and in return, the United States formulates
various trade regulations to deter China from trading in some products in the USA an aspect that
subordinates China to the American order (Davis, Fuchs& Johnson, 2019). The United States has
been a superpower has the mandate to set various trade regulations that has an impact on the
trading practices of China. China is striving to come up with superior technology in various
aspects ranging from the telecommunication industry to armory. As a result, the United States
strives to cut short the dreams of China in excelling in various aspects because it cannot accept to
be inferior to China which is clear evidence of the new kind of cold war between the two
countries (Friedman & McCormick, 2015). There has been a recent trade war between China and
the United States as both sides lob threats of new trade tariffs. This would see President Trump
impose a 25% tariffs on China's products. As much as both nations think they are engaging in a
productive war, it is ironic that of the two nations, none will benefit from the U.S. looking to lose
much on the trade war. The essay focus on analyzing the inefficiency experienced by initiating a
trade war which causes more harm than the gain to the two nation and the globe at large.

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Trade wars occur when two or more nations impose tariffs on the products of each other to limit
their nature of exportations (Handley & Limão, 2017). Imposing tariffs tend to discourage most
investors from trading since high restricts makes the trading nature expensive and non-
productive. For a while, the U.S. has been one of the most dominant states to have globally
developed its market share. With the current drastic growth of China, the instability of global
trade has been felt more so in Africa nations where China has mostly taken the base.
Under most circumstances, tariffs have been imposed on goods not produced by different
nations. Besides, tariffs have commonly been imposed to protect a country's local industries and
promote their product. However, with the increasing rate of globalization further encouraging
global trading, imposing tariffs has been taken as an approach of trade war mostly within
competing nations. For instance, the trade war between the two nations has been caused by the
imposing of tariffs on various products as stated by Odgaard (2017), President Donald has
always spread the criticism of China's approaches to copy American technology in the
manufacturing and production of products and service. The process has led to the two states
imposing tariffs limiting the importation of different goods between them. Most of the products
and services from the U.S. that have been targeted include agricultural and food goods.

NEW COLD WAR IN TRADE BETWEEN CHINA AND USA 4
Though, world trade organization permits imposition of tariffs with the objective of safeguarding
nation's economy from collapsing, President Donald Trump's decisions of imposing tariffs on
chain's services has been perceived to be the unfair trade practices that China has seen concluded
in significant trade debt. The tariffs which are perceived to be of positivity to the nations have
come to affect its trading relationships with most national and China at large. Research indicates
that the United States of America has experienced a significant depreciation in the import of
various Chinese products intending to weaken its economy to enhance its economic dominance
as a superpower.
The main reason why the USA enforced the trading tariffs on China was to protect its national
security and intellectual property business, and this has been observed to be a strategy of
reducing U.S. trade deficit with China. China has been involved in malpractices that have
affected the U.S.'s economy negatively. This has seen significant strategies being considered by
the U.S.'s administration to ensure that most of Chinas products are taxed to safeguard U.S.'s
business interest. Some products have also been imposed include aluminum and steel imports;
the measure has led in the trade war to safeguard its interests to ensure their products remain
competitive in the market. However, the strategy will not be achieved as this will allow other
nation as it will be seen as a gap within the market.