THE US-CHINA TRADE WAR. WHAT'S AT STAKE?

Agnes Ghibuţiu

Revista de Economie Mondiala / The Journal of Global Economics, 2018, vol. 10, issue 4, 1-35

Abstract: After being trapped in an increasingly fierce and devastating trade war over the last months,Washington and Beijing managed to conclude a temporary truce during President Trump's meetingwith Chinese President Xi Jinping on the sidelines of the G20 summit in Buenos Aires.Starting from the analysis of the current state of the US-China trade war, this article aims to:(1) highlight the effects of this trade war, both from the perspective of the parties implied, and theglobal trading system; (2) reveal the reasons behind this war, as well as its real stakes; and (3) assessthe outlook for this war in the light of the recent US-China ceasefire. While the temporary truce in theUS-China trade war does not solve the fundamental differences between the two nations, it allows theresumption of the negotiations to resolve a trade dispute that has dangereously escalated over the lastmonths, damaging the global economy. The trade war between the two largest economies in the worldis far from over. There is also little hope for the two sides to strike a comprehensive agreement in thenear future, and the prospects for the long-term Sino-American relationship are fraught with majoruncertainties.

Keywords: United States; China; trade policy; tariffs; trade war (search for similar items in EconPapers)
JEL-codes: F13 F14 O51 O53 (search for similar items in EconPapers)
Date: 2018
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