US-China Trade War and Implications for BRI

Adam Saud* and Kinza Arif**

Abstract

Despite the fact that the United States (US) and China have been
vehemently opposing each other over the past few decades, they have had
established deep economic ties. However, after Donald Trump assumed
presidency in January 2017, a somewhat more hostile trade war with China
began with devastating consequences on the global economy. Through the
lens of Realism, this paper critically analyses the phenomenon of the US-
China trade war and its effects on global economy. It also highlights how
this trade war adversely affects China’s Belt and Road Initiative (BRI). It
also chalks out policy recommendations for both the US and China to
ensure a smooth and steady rise of their economies.

Keywords: US-China Trade War, Belt and Road Initiative (BRI),

Global Economy, Realism, Sino-US Relations.

Introduction

At present, US-China relations are fast deteriorating in the political as well

as economic domain. In the past few decades, the emergence of China as a
global economic power has been viewed critically by the US. This
ambience of mistrust amidst both states is strongly rooted in the fact that
both the states have totally different political and economic systems. On one
hand, China’s economic rise has allowed it to become a key economic
partner for the US, and both the economies have become heavily
interdependent on each other. On the other hand, the US, under the Trump
administration, have embarked on a “tit-for-tat” hostile trade policies with
the world’s second largest economy.1
*
The author is Associate Professor of International Relations, Bahria University,
Islamabad.
**
The author is an independent researcher.
1
Ryan Hass, “Tit-for-tat Cycle with China will Hurt US Economy,” The Brookings
Institute, February 5, 2018, https://www.brookings.edu/blog/order-from-
chaos/2018/02/05/tit-for-tat-cycle-with-china-will-hurt-u-s-economy/