THE US-CHINA TRADE WAR: CAUSE-EFFECT ANALYSIS

  • Irina Onyusheva Turan University, Almaty
  • Cherry Thinn Naing Stamford International University, Bangkok
  • Aung Lin Zaw Stamford International University, Bangkok
Keywords: trade relations; trade war; USA; China; cause-effect analysis

Abstract

The US-China trade war has been considered one of the urgent issues in today’s international trade. In fact, this is a trade war where top two largest world economies participate.  In this paper, we have made an attempt to describe and explain the motives behind this trade war along with the potential threats, causes and effects for the world economy. Comparative macroeconomic analysis of the involved countries has been also conducted. Possible retaliation of China and other countries to the US’ increasing in tariffs on imported goods, protectionism and deficit issues in the US are discussed in the first part of the paper. The authors focus on the potential threats and effects that this trade war may have on the world economy from the political economy point of view. Authors’ vision on the future prospects of the current situation is also presented.

Author Biographies

Irina Onyusheva, Turan University, Almaty

Dr., Prof., Turan University, Almaty, Kazakhstan; Stamford International University, Bangkok, Thailand

Interests – Economics, Strategic Management, Formation, ensuring and increasing economic competitiveness on both micro- and macro- levels; Human Capital development; HR Management; Knowledge Economy; Knowledge Management; Project Management; Management in Education

Cherry Thinn Naing, Stamford International University, Bangkok

Stamford International University, Bangkok, Thailand; Strategy First Institute, Yangon, Myanmar, International MBA Program

Interests – International Business Management, Strategic Management, HR Management

Aung Lin Zaw, Stamford International University, Bangkok

Stamford International University, Bangkok, Thailand; Strategy First Institute, Yangon, Myanmar, International MBA Program

Interests – International Business Management, Strategic Management, HR Management

References

Aleem, Z. (2018). The US-China trade war, explained in under 500 words. Retrieved from: https://www.vox.com/world/2018/7/6/17542482/china-trump-trade-war-tariffs

Amadeo, K. (2018). Trade Protectionism and Its Methods With Examples, Pros, and Cons Retrieved from: https://www.thebalance.com/what-is-trade-protectionism-3305896

Aversa, J. (2018). Retrieved from bea.gov: https://bea.gov/newsreleases/international/trade/2018/pdf/trad0118annual_fax.pdf

Board, E. (2018). A New Front in Trump's Trade War. Retrieved from: https://www.bloomberg.com/view/articles/2018-03-11/china-intellectual-property-and-trump-s-next-trade-war

Bryan, B. (2018). Trump threatens to double down on his trade war with China — and the fight could be about to get ugly Retrieved from: https://www.businessinsider.com/trump-china-trade-war-tariff-chinese-imports-2018-8

China’s response to the trade war can hit US technology industry where it hurts most. (2018). Retrieved from: https://www.scmp.com/business/global-economy/article/2154924/chinas-response-trade-war-can-hit-us-technology-industry

Econ, M. (2017). Is the U.S. trade deficit a problem? What is the link between the trade deficit and exchange rates? Retrieved from: https://www.frbsf.org/education/publications/doctor-econ/2007/june/trade-deficit-exchange-rate/

Krishna, M. (2018). Where Does the U.S. Import Steel From? Retrieved from: https://www.investopedia.com/news/where-does-us-import-steel/

Kuen, Y. L. (2018). From trade war to currency war? Will RM suffer? Retrieved from: https://www.thestar.com.my/business/business-news/2018/07/23/from-trade-war-to-currency-war/

Lawrence, Susan V.; Martin, Michael F. (2012). Understanding China’s Political System. Retrieved from: https://fas.org/sgp/crs/row/R41007.pdf

Lobosco, K. (2018). Trade war: The US and China just slapped new tariffs on each other. Retrieved from: https://edition.cnn.com/2018/08/23/politics/china-us-tariffs/index.html

Long, H. (2018). Why America’s return to $1 trillion deficits is a big problem for you. Retrieved from: https://www.washingtonpost.com/news/wonk/wp/2018/04/09/why-americas-return-to-1-trillion-deficits-is-a-big-problem-for-you/?noredirect=on&utm_term=.455bdcfd58f

Philip Wee, Nathan Chow. (2018). CNY: What’s going on, where is it going. Retrieved from www.dbs.com.sg: https://www.dbs.com.sg/treasures/templatedata/article/generic/data/en/GR/072018/180727_insights_china_cny_whats_going_on_where_is_it_going.xml

Pong, J. (2018). Retrieved from: https://ig.ft.com/us-china-tariffs/

Sahadi, J. (2017). Deficit for 2017 hits $666 billion. Retrieved from: https://money.cnn.com/2017/10/20/news/economy/deficit-2017/index.html

Segal, T. (2018). What is a trade deficit and what effect will it have on the stock market? Retrieved from: https://www.investopedia.com/ask/answers/trade-deficit-effects-on-stock-market/

Swanson, A. (2018). Chinese Goods May Face 25% Tariffs, Not 10%, as Trump’s Anger Grows. Retrieved from: https://www.nytimes.com/2018/08/01/business/china-tariffs-trump.html.

Tan, H. (2018). Beijing retaliates as new US tariffs kick in on $16 billion of Chinese goods. Retrieved from: https://www.cnbc.com/2018/08/23/us-china-trade-war-new-round-of-american-tariffs-on-chinese-imports.html

The real reason Trump wants to start a trade war (2018). Retrieved from: https://www.washingtonpost.com/blogs/plum-line/wp/2018/03/02/the-real-reason-trump-wants-to-start-a-trade-war/?noredirect=on&utm_term=.4854ed38a4a0

Trade War (2018). Retrieved from: https://www.investopedia.com/terms/t/trade-war.asp

Trump tariffs: US escalates trade threats to China (2018). Retrieved from: https://www.bbc.com/news/business-44529149

Update to The IP Commission Report_The Theft of American Intellectual Property: Reassessments of Challenge and United States Policy (2017). The National Bureau of Asian Research. Retrieved from: www.ipcommission.org
Published
2019-01-30
How to Cite
Onyusheva, I., Naing, C., & Zaw, A. (2019). THE US-CHINA TRADE WAR: CAUSE-EFFECT ANALYSIS. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (1(14), 07-15. Retrieved from https://euraseans.com/index.php/journal/article/view/121