U.S Foreign Policy

Sandra Obiorah

Enter the name of Instructor

Government

September 14, 2019.

USFP and the trade deficit with China- Research Proposal

Introduction

The United States and China remain at odds to each other on many global, political and economic issues. More recently, both countries are involved in a trade war which seems to be never-ending. This trade or more generally the economic conflict started with the United States President Donald Trump forcing China to withdraw the so-called ‘unfair trade practices’ which he believed hurt the bilateral trade relations. Experts believe that political differences and Chinese rise- in terms of economy is hurting the United States interests, and for such reasons, the United States is forced to adopt strict measures against China ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"9ct1fHIa","properties":{"formattedCitation":"(Christensen)","plainCitation":"(Christensen)","noteIndex":0},"citationItems":[{"id":162,"uris":["http://zotero.org/users/local/s8f0QVnP/items/J7A6LKBU"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/J7A6LKBU"],"itemData":{"id":162,"type":"chapter","title":"The Impact of China on South America Political and Economic Development","container-title":"Regionalism, Development and the Post-Commodities Boom in South America","publisher":"Springer","page":"77–100","source":"Google Scholar","author":[{"family":"Christensen","given":"Steen"}],"issued":{"date-parts":[["2018"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Christensen). The bilateral differences of United States and China are not only downing the bilateral trade volume, rather is impacting negatively on their relations with rest of the world. For example, European countries are fearful that this trade war might not expand to include European Union relations with either China or America.

Summarizing the Issue

The United States consider China a rising competitor. Although not explicitly and openly, but the United States policies suggest that it is uneasy with the expanding Chinese presence. On the other side, China also wants to gradually take over the global markets in terms of its exports. Until June of 2019, the Chinese tariffs on United States products amounted to $60 bn at 25 per cent. However, United States imposed $200 bn on 25 per cent ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"0QSoHUgz","properties":{"formattedCitation":"(\\uc0\\u8220{}US-China Trade War in 300 Words\\uc0\\u8221{})","plainCitation":"(“US-China Trade War in 300 Words”)","noteIndex":0},"citationItems":[{"id":165,"uris":["http://zotero.org/users/local/s8f0QVnP/items/L8VIVUJ7"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/L8VIVUJ7"],"itemData":{"id":165,"type":"article-newspaper","title":"US-China trade war in 300 words","container-title":"BBC News","section":"Business","source":"www.bbc.com","abstract":"A brief guide on the trade war between the world's two largest economies.","URL":"https://www.bbc.com/news/business-45899310","language":"en-GB","issued":{"date-parts":[["2019",9,2]]},"accessed":{"date-parts":[["2019",9,14]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“US-China Trade War in 300 Words”). Such enlarged tariffs reflect the gravity of the trade conflict between the two countries. United States foreign policy revolves around the aim of protecting the strategic interests of US and its allies. President Trump’s administration believes that Chinese rise can threaten its geo-strategic and politico-economic aims at the global level. For such reasons, the experts believe the trade conflict is initiated ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"6E0nTXLq","properties":{"formattedCitation":"(Higgott)","plainCitation":"(Higgott)","noteIndex":0},"citationItems":[{"id":167,"uris":["http://zotero.org/users/local/s8f0QVnP/items/DA8TCECC"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/DA8TCECC"],"itemData":{"id":167,"type":"article-journal","title":"Globalism, populism and the limits of global economic governance","container-title":"Journal of inter-regional studies: regional and global perspectives, from march","page":"2–23","source":"Google Scholar","author":[{"family":"Higgott","given":"Richard"}],"issued":{"date-parts":[["2018"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Higgott). The Chinese therefore, believe that United States is off-putting its rise. Although both states are discussing this issue these discussions have proved difficult.

Current developments

The trade war between US and China poses swerve threat to global economy. Some latest publications suggest that the trade war might prove more dangerous than the great recession since the stakes of half of the global countries are attached in the markets of China and United States. The current development in the trade war echoes the chances that this bilateral trade war might turn to a full-blown trade war ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"jgA5cwXS","properties":{"formattedCitation":"(\\uc0\\u214{}zer)","plainCitation":"(Özer)","noteIndex":0},"citationItems":[{"id":169,"uris":["http://zotero.org/users/local/s8f0QVnP/items/UNGPNCGA"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/UNGPNCGA"],"itemData":{"id":169,"type":"chapter","title":"The Effect of the US-China Trade War on Global Trade","container-title":"International Trade Policies in the Era of Globalization","publisher":"IGI Global","page":"56–70","source":"Google Scholar","author":[{"family":"Özer","given":"Ahu Coşkun"}],"issued":{"date-parts":[["2020"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Özer), which can be devastating. The politico-economic experts believe that the trade wars place with them the risk of technological arms race ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"E8aHfwoL","properties":{"formattedCitation":"(\\uc0\\u214{}zer)","plainCitation":"(Özer)","noteIndex":0},"citationItems":[{"id":169,"uris":["http://zotero.org/users/local/s8f0QVnP/items/UNGPNCGA"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/UNGPNCGA"],"itemData":{"id":169,"type":"chapter","title":"The Effect of the US-China Trade War on Global Trade","container-title":"International Trade Policies in the Era of Globalization","publisher":"IGI Global","page":"56–70","source":"Google Scholar","author":[{"family":"Özer","given":"Ahu Coşkun"}],"issued":{"date-parts":[["2020"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Özer). Since the conflict erupted from political rhetoric, therefore the foreign policy experts believe that a political settlement should be sought after for this issue. in some very latest development it was noted that markets received a boost when President Trump announced to extend truce of £153 bn ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"RwkG8WuX","properties":{"formattedCitation":"(\\uc0\\u8220{}US-China Trade War Biggest Threat to Global Economy in 2019, Research Shows\\uc0\\u8221{})","plainCitation":"(“US-China Trade War Biggest Threat to Global Economy in 2019, Research Shows”)","noteIndex":0},"citationItems":[{"id":171,"uris":["http://zotero.org/users/local/s8f0QVnP/items/YQHS29XN"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/YQHS29XN"],"itemData":{"id":171,"type":"webpage","title":"US-China trade war biggest threat to global economy in 2019, research shows","container-title":"The Independent","abstract":"Experts also warned that the impact of a no-deal Brexit could prove sizeable enough to dent global economic growth","URL":"https://www.independent.co.uk/news/business/news/us-china-trade-war-threat-global-economy-risk-no-deal-brexit-recession-a8796486.html","language":"en","issued":{"date-parts":[["2019",2,26]]},"accessed":{"date-parts":[["2019",9,14]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“US-China Trade War Biggest Threat to Global Economy in 2019, Research Shows”). The economic experts who are witnessing these developments believe that such a step can avoid escalation in the trade war ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"K7W31y1u","properties":{"formattedCitation":"(Lau)","plainCitation":"(Lau)","noteIndex":0},"citationItems":[{"id":172,"uris":["http://zotero.org/users/local/s8f0QVnP/items/WPRGIGP3"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/WPRGIGP3"],"itemData":{"id":172,"type":"article-journal","title":"The China–US Trade War and Future Economic Relations","container-title":"China and the World","page":"1–32","source":"Google Scholar","author":[{"family":"Lau","given":"Lawrence J."}],"issued":{"date-parts":[["2019"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Lau).

Importance of the Issue

The ongoing trade war between the United States and China is impacting the trade deals worldwide. It has also brought the two countries to stand against each other even in the matters of global concerns. Other than the Chinses and Americans business firms and trade organizations, the international business firms are also witnessing slow growth, who also urge to lower the tariff barriers from both sides. Many studies have also indicated that from previous two or three years, the mutual trade between these two countries has also witnessed downturns. The trade war has adversely impacted over global trade carried in European Union, South East Asian markets, Indian and Latin American markets. Such trends suggest that a political solution to this trade conflict is inevitable.

Works Cited:

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Christensen, Steen. “The Impact of China on South America Political and Economic Development.” Regionalism, Development and the Post-Commodities Boom in South America, Springer, 2018, pp. 77–100.

Higgott, Richard. “Globalism, Populism and the Limits of Global Economic Governance.” Journal of Inter-Regional Studies: Regional and Global Perspectives, from March 2018, pp. 2–23.

Lau, Lawrence J. “The China-US Trade War and Future Economic Relations.” China and the World, 2019, pp. 1–32.

Özer, Ahu Coşkun. “The Effect of the US-China Trade War on Global Trade.” International Trade Policies in the Era of Globalization, IGI Global, 2020, pp. 56–70.

“US-China Trade War Biggest Threat to Global Economy in 2019, Research Shows.” The Independent, 26 Feb. 2019, https://www.independent.co.uk/news/business/news/us-china-trade-war-threat-global-economy-risk-no-deal-brexit-recession-a8796486.html.

“US-China Trade War in 300 Words.” BBC News, 2 Sept. 2019. www.bbc.com, https://www.bbc.com/news/business-45899310.