The Impact Of US-China Rivalry on Globalisation
Written by: Ms. Niharika Gupta
ABSTRACT
United States of America (USA) and China are among the world’s leading powers in terms of the size of their economies, defense budget, trade export, and import, Greenhouse gas mission, etc. One of the similarities between them is that they are permanent members of the United Nations Security Council. It is possible to illustrate the global importance of the American and Chinese economies in two ways, both of which shed light on the ongoing challenges of power transition: one focuses on the rise of the Chinese economy relative to US GDP. At the same time, the other emphasizes globalization’s accompanying shifts.
China’s GDP was about a tenth of the United States in 2000. However, after becoming a member of the World Trade Organization (WTO) in 2001, China’s export-led growth skyrocketed in the 2000s, with its share of the U.S. economy more than tripling from 12% in 2000 to over 40% in 2010.[1] Since 2018, the U.S. and China have put many restrictions on trade flows between the two countries, the most notable of which have been tariff increases.
Keywords- Globalization, United States, China, World Trade Organization (WTO), Gross Domestic Product (GDP), Defense, Economy
The tug of war between the United States and China: At a Glance
When then-President Donald Trump’s fixation with trade deficits led him to put punitive tariffs on China in 2018, bilateral relations between the United States and China fell. Following the tariffs, China was denied access to high-tech American products and foreign investments due to security concerns and claims of unfair Chinese business practices.
The United States’s trade battle over China’s unfair economic policies has now devolved into a “cold war” driven by ideological differences. It started in early 2018 with taxes on solar panels and washing machines in response to
cheaper competitors from South Korea, China, and other countries. However, by mid-2018, China had become the primary focus of a broader and more aggressive tariff war.
From this vantage point, it’s evident that the so-called “trade war” was never going to be about just exchanging products and services. Confrontations will always arise, but they have so far been avoided by means other than conflict. Strategic competitiveness between the U.S. and China is at stake. This competition will define how international affairs will be conducted in the first half of the twenty-first century.
After the United States goods trade deficit with China hit $375 billion in 2017, the U.S. levied three tariffs on Chinese imports. In July, it placed duties on $34 billion in Chinese goods, $16 billion in August, and $200 billion in September. The tasks range from 10% to 20%, and they might soon be expanded to encompass all of China’s $505 billion in exports to the U.S……………………………………….. To Read Full Paper Click on the download button below.
[1] C. Fred Bergsten, APEC Should Pursue a Free Trade Area of the Asia Pacific, Peterson Institute for International Economics(16 April 2022, 10:50 Pm) https://www.piie.com/commentary/speeches-papers/apec-should-pursue-free-trade-area-asia-pacific
[2] The Impact Of US-China Rivalry on Globalisation
impact of us-china trade war, impact of us-china trade war on other countries, us-china trade war summary, who is winning the trade war between u.s. and china, us-china trade war impact on global economy,
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