TITLE

Analysis of the Causes of Trade War Between the US and China

and its Impact on Selected Countries

Respondent supervisor

Resvee Ahmed ( 锐思 ) Ji Jiali

 Background of Trade War

Research Methodology

Trade Conflict Causes

CONTENTS
Effects Of Trade War

Trade War Impact

Conclusion
 Background of the Research

Introduction:

The global economy has seen a number of trade conflicts between China and the US,
resulting in a complete trade war. The IMF (2018) estimates that the trade conflicts between the
US and China will have a negative economic impact on both countries' GDPs, decreasing them by
0.9% and 0.6%, respectively, and causing a 0.4% decline in global GDP over time. In a report
released in July 2018, The European Commission reduced its economic growth projection for the
EU, showing that the effects of the trade conflict are spreading beyond China and the US. Net
exports are still a major driver of China’s development, although their contribution is decreasing
as the country moves to a based economy.
 Background of Trade War

Background

The China-United States trade war is an ongoing economic conflict between China and the
US. It was started by then-President Donald Trump in 2018 to press Beijing to stop its unfair
trading practices and theft of intellectual property. Then The Chinese government has accused
the Trump administration of being nationalist and protectionist. The trade war ended in
December 2021, with China failed to meet U.S. import targets. The China-US trade war has
become more frequent as 2018 progresses, with the US imposing anti-dumping taxes or tariffs
on Chinese goods since the beginning of year and Xi Jinping and Donald Trump agreed to
suspend new trade prices for 90 days at the 2018 G20 summit.
Historical Viewpoint
Trade wars have often occurred in the past, with the US and China being two of the
brightest examples. The 1980s US-Japan car trade war had a significant negative impact on
both American consumers and Japanese automakers. The U.S.-Japanese trade war of the
1980s had a significant negative impact on American consumers and Japanese carmakers.
To evaluate a trade war, one must look beyond the rhetoric and pay attention to its
fundamental causes.
Research Methodology

1 Research Design

2 Data Collection

3 Data Analysis

4 Ethical Considerations

5 Limitations
 Research Methodology

1. Research Design:- A systematic review of the literature will allow an in-depth investigation of the
economic and political implications of the trade conflict between the United States and China.

2. Data Collection:- Secondary sources such as academic journals, official papers, news pieces, online
databases, and government websites will be used to gather data for this investigation. These sources include
academic journals, official papers, news pieces, online databases, and government websites.

3. Data Analysis:- Thematic analysis is a qualitative research technique used to discover, explore, and report
patterns in data related to the causes and effects of US-China trade conflicts.

4. Ethical Considerations:- Secondary data sources used to protect privacy and ethical values.

5. Limitations: The use of secondary data limits the scope and depth of analysis.
Trade Conflict Causes

The current trade war between China and the United States is caused by the trade deficit between
the two countries. Under President Donald Trump, the United States has taken a protectionist stance
towards China, increasing tariffs on Chinese goods and taking revenge. However, economic concerns
have forced American politicians to carry out this types of activities. This essay explains the nature of
the trade war by its economic causes.
 Trade War Effect

 Effect in China:-
China's President Xi Jinping and General Secretary Xi Yongkang once again pledged to increase their
imports, reduce restrictions on foreign ownership, and strengthen the protection of intelligent property.

 Effects In Us:-
Taxes on Chinese goods have had a positive and negative impact on the U.S. economy, some industries are
thinking about creating jobs and others about dismissal. The Trump administration has helped farmers
financially, but 300,000 U.S. jobs have been lost or not created.

 Overall Economy:-
The US industry lost jobs as a result of the trade war. The trade deficit with China decreased in 2019,
but reversed in 2020. The goods deficit reached a new level, rising 21% from 2016.
 Trade War Impacts

 Impacts on Southeast Asia:-

Due to the trade war, companies are moving to low-cost producing countries from China, and the
CPTPP and ASEAN Free Trade Area remain economic pillars for Southeast Asia.

 Implications for Canada:-

The Trump administration, which sees China as a geopolitical and economic enemy, has had a
negative impact on Canadian industries such as canola and pigs.

 Impact In Rest Of The World:- The U.S.-China trade conflict has increased world trade by
3 percent, with exports from 19 countries in 48 of which have increased significantly.
Taiwan suffered the worst, creating more than 21,000 jobs, and the new Taiwanese dollar
gained strength.
 Conclusion

The trade war between the United States and China has seriously impacted both parties and the
international community, disrupting international supply chains, uncertainty in trade relations and
economic impacts. To promote a safe and convenient business environment, decision-makers should
encourage stable discussion, discussion and cooperation.
THANK YOU ALL