Trade Disputes Between China and the United States: Growing Pains so Far, Worse Ahead?

Gary Hufbauer and Jared C. Woollacott ()
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Jared C. Woollacott: Peterson Institute for International Economics

No WP10-17, Working Paper Series from Peterson Institute for International Economics

Abstract: This study covers the history of Sino-US trade relations with a particular focus on the past decade, during which time each has been a member of the World Trade Organization (WTO). Providing a brief history of 19th and 20th century economic relations, this paper examines in detail the trade disputes that have arisen between China and the United States over the past decade, giving dollar estimates for the trade flows at issue. Each country has partaken in their share of protectionist measures, however, US measures have been characteristically defensive, protecting declining industries, while Chinese measures have been characteristically offensive, promoting nascent industries. We also cover administrative and legislation actions within each country that have yet to be the subject of formal complaint at the WTO. This includes an original and comprehensive quantitative summary of US Section 337 intellectual property rights cases. While we view the frictions in Sino-US trade a logical consequence of the rapid increase in flows between the two countries, we caution that each country work within the WTO framework and respect any adverse decisions it delivers so that a protracted protectionist conflict does not emerge. We see the current currency battle as one potential catalyst for such conflict if US and Chinese policymakers fail to manage it judiciously.

Keywords: Agreement; Anti Dumping; Antidumping; Commodity Agreements; Dumping; Duty; Export Promoting; Export Restrictions; Exports; Free Trade; GATT; GATT WTO; General Agreement on Tariffs and Trade; Import; Import Restricted; Import Subsidies; Import Subsidy; Intellectual Property Rights; International Agreement; International Trade Agreements; International Trade Organizations; Liberalization; MFN; Multilateralism; Non Tariff; Nontariff Barrier; Openness; Optimal Trade Policy; Protectionism; Protectionist; Quotas; Sanctions; Services; Smoot Hawley; Subsidies; Tariff; Trade; Trade Agreements; International Trade. (search for similar items in EconPapers)
JEL-codes: F13 F53 N71 N72 N75 (search for similar items in EconPapers)
Date: 2010-12
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