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The US-China Trade Competition: An Overview

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  • K M, SIBY
  • P, DR.ARUNACHALAM

Abstract

An impending trade war between US and China, the world’s two largest economies can cause insurmountable consequences of unfathomable magnitude. It can cause distortions in the complex web of interconnected commodity and value chains sprawled across the boundaries, ultimately leading to suboptimal social welfare of the international community. The present paper intends to provide an overview of the US-China trade imbalance and resulting trade tensions that it begets .The paper analyses various reasons for the US- China trade competition and its implications on world trade quoting world bank data from 1992-2016 and concludes by proposing the likelihood of not getting the scenario escalated.

Suggested Citation

  • K M, Siby & P, Dr.Arunachalam, 2018. "The US-China Trade Competition: An Overview," MPRA Paper 87236, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:87236
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    File URL: https://mpra.ub.uni-muenchen.de/87236/1/MPRA_paper_87236.pdf
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    References listed on IDEAS

    as
    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
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    Cited by:

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    2. Mohammadi, Reza & He, Qing & Karwan, Mark, 2021. "Data-driven robust strategies for joint optimization of rail renewal and maintenance planning," Omega, Elsevier, vol. 103(C).
    3. Heydarzadeh, Zahra & Mac Kinnon, Michael & Thai, Clinton & Reed, Jeff & Brouwer, Jack, 2020. "Marginal methane emission estimation from the natural gas system," Applied Energy, Elsevier, vol. 277(C).

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    More about this item

    Keywords

    Trade war; global value chain; economic nationalism; protectionism; isolationism;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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