U.S.-China Relations in 20182019: Trade War and the Process of Decoupling

128
DOI: 10.20542/0131-2227-2020-64-6-85-93

Ya. Leksyutina (lexyana@ya.ru),
Saint-Petersburg State University, 7/9, Universitetskaya Emb., Saint-Petersburg, 199034, Russian Federation



Abstract

In the post-Cold war period, U.S.–China relations have always been characterized by the presence of a large number of problems and contradictions, which, however, did not cancel the readiness of the two states to compromise and seek cooperation on global and regional issues. An important stabilizing foundation for these bilateral relations has always been the strong economic interdependence of the two countries, which has restrained the growth of political differences into prolonged crises of bilateral interaction. However, the arrival of Donald Trump in the American administration significantly shook the basics of U.S.–China relations. Motivated by a desire to eventually solve longstanding problems in the bilateral trade and economic relations by pressuring Beijing to change its economic practices, since 2018, Trump administration has imposed in several stages tariffs on almost all U.S. imports from China, placed restrictions on the ability of American firms to supply Chinese technology companies, labeled China a currency manipulator for the first time in a quarter century, etc. Beijing has reciprocated with imposition of tariffs on imports from the U.S. and other countermeasures, undertaken subtle changes of its economic practices, stringently rejecting to bring fundamental changes to its economic policies. Initiated by Trump’s actions, trade war with the PRC has launched the decoupling process in the U.S.–China economic relations – the destruction of deep economic interdependence between the two countries accumulated over the past four decades, specifically in high-tech industries. There are more and more clear signs that the U.S. trade war with China, which was originally based on economic reasons and motivation, has become a trigger for the development of structural and system contradictions between the two states. Having lost the once-stabilizing bilateral relations basis – the deep economic interdependence – the United States and China are becoming increasingly involved in a complex overall confrontation, falling into the so-called “Thucydides trap”.


Keywords

U.S.–China relations, trade war, China, the U.S., trade and economic relations, telecommunication companies, technologies


REFERENCES 

1. Timofeev O.A. Kitaisko-amerikanskii torgovyi konflikt 2019 goda i ego perspektivy: mezhdu pessimizmom i neizvestnost’yu [Sino-US trade conflict in 2019 and its prospects: between pessimism and the uncertainty]. Kitai v mirovoi i regional’noi politike. Istoriya i sovremennost’, 2019, vol. 24, no. 24, pp. 173-186. DOI:10.24411/2618_6888_2019_10010

2. Niu Xinchun. Eight Myths of Sino-US Relations. Contemporary International Relations, 2011, no. 5, pp. 5-12 (In Chin.)

3. Lawrence S. U.S.–China relations. CRS report, 29.08.2019. Available at: https://fas.org/sgp/crs/row/R45898.pdf (accessed 11.03.2020).

4. USTR Statement on Section 301 Tariff Action Regarding China. Office of the U. S. Trade Representative. 23.08.2019. Available at: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/august/ustr-statement-section-301-tariff (accessed 03.03.2020).

5. Economic and Trade Agreement between the Government of the USA and the Government of the PRC. Article 6.2. Available at: https://ustr.gov/sites/default/files/files/agreements/phase%20one%20agreement/Economic_And_Trade_Agreement_Between_The_United_States_And_China_Text.pdf (accessed 01.04.2020).

6. Leksyutina Ya. Torg zdes’ neumesten [Trading is inappropriate here]. Profil’, 01.05.2018. Available at: http://m.profile.ru/politika/item/125565-torg-zdes-neumesten (accessed 23.03.2020).

7. Update Concerning China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation. 20.11.2018. Available at: https://ustr.gov/sites/default/files/enforcement/301Investigations/301%20Report%20Update.pdf (accessed 21.02.2020).

8. Trush S. M. Torgovaya voina D. Trampa protiv KNR: sobytiya, motivatsii, vnutrennii kontekst [D. Trump’s Trade War against China: Events, Motivations, Internal Context]. Russia and America in 21st century, issue 3, 24.12.2018. DOI:10.18254/S0000047-8-1. Available at: https://rusus.jes.su/s207054760000047-8-1/ (accessed 26.03.2020).

9. Mikheev V., Lukonin S. Kitai–SShA: mnogovektornost’ “torgovoi voiny” [China–USA: Multiple Vector of “Trade War”]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2019, vol. 63, no. 5, pp. 57-66. DOI:10.20542/0131-2227-2019-63-5-57-66

10. 2019 Annual report to Congress. U.S.–China Economic and Security Review Commission. Available at: https://www.uscc.gov/annual-report/2019-annual-report (accessed 06.03.2020).

11. Zhang A. The U. S.–China Trade Negotiation: A Contract Theory Perspective. 01.12.2019. Available at: https://hub.hku.hk/bitstream/10722/279684/1/Content.pdf?accept=1 (accessed 21.03.2020).

12. Findings of the Investigation into China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation under Section 301 of the Trade Act of 1974. 22.03.2018. Available at: https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF (accessed 21.03.2020).

13. Hearing on Risks, Rewards, and Results: U. S. Companies in China and Chinese Companies in the United States, written testimony of Mark Wu. 28.02.2019. Available at: https://www.uscc.gov/hearings/risks-rewards-and-results-us-companies-china-andchinese-companies-united-states (accessed 11.03.2020).

14. 2018 Report to Congress on China’s WTO Compliance. United States Trade Representative. February 2019. Available at: https://ustr.gov/sites/default/files/2018-USTR-Report-to-Congress-on-China%27s-WTO-Compliance.pdf (accessed 15.03.2020).

15. Lim D., Ferguson D. Conscious Decoupling: The Technology Security Dilemma. 31.10.2019. DOI:10.22459/CSY.2020.04 Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3484171 (accessed 20.03.2020).

16. BIS Removes ZTE from Entity List. Wiley, 30.03.2017. Available at: https://www.wiley.law/alert-Client_Alert-BIS_Removes_ZTE_from_Entity_List (accessed 21.03.2020).

17. Glaser B., Flaherthy K. U.S.–China Relations: Tit-for-Tat Tariffs. Comparative Connections, 2018, vol. 20, no. 2, pp. 21-36.

18. John S. McCain National Defense Authorization Act for Fiscal Year 2019. Public Law 115–232. 13.08.2018. Section 889. Available at: https://www.congress.gov/115/plaws/publ232/PLAW-115publ232.pdf (accessed 21.03.2020).

19. Executive Order on Securing the Information and Communications Technology and Services Supply Chain. 15.05.2019. Available at: https://www.whitehouse.gov/presidential-actions/executive-order-securing-information-communications-technology-services-supply-chain/ (accessed 10.03.2020).

20. Lewis J. China’s Pursuit of Semiconductor Independence. CSIS, 27.02.2019. Available at: https://csis-prod.s3.amazonaws.com/s3fs-public/publication/190115_Lewis_Semiconductor_v6.pdf (accessed 21.03.2020).

21. U.S. Won’t Partner with Countries that Use Huawei Systems: Pompeo. Reuters, 21.02.2019. Available at: https://www.reuters.com/article/us-huawei-tech-usa-pompeo-idUSKCN1QA1O6 (accessed 21.03.2020).

22. Segal A. Seizing Core Technologies: China Responds to U. S. Technology Competition. WITA, 06.01.2019. Available at: https://www.wita.org/nextgentrade/china-responds-u-s-tech-competition/ (accessed 21.03.2020).

23. Chun Yatu, Van Tszyun’lin. Kitai na strazhe svobodnoi torgovli [China is the guardian of free trade]. Kitai, 2019, no. 7 (165), pp. 52-53. Available at: https://www.pressreader.com/china/china-russian/20190708/282029033820428 (accessed 02.04.2020).

24. Lomanov A. Kitaiskie diskussii ob otnosheniyakh s SShA i torgovoi voine [Chinese Discussions About Relations with the U.S. and the Trade War]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2019, vol. 63, no. 10, pp. 17-29. DOI:10.20542/0131-2227-2019-63-10-17-29

25. Wang Jisi. Assessing the Radical Transformation of U. S. Policy toward China. China International Strategy Review, 2019, no. 1, pp. 195-204. DOI:10.1007/s42533-019-00029-4


Registered in System SCIENCE INDEX

For citation:
Leksyutina Y. U.S.-China Relations in 20182019: Trade War and the Process of Decoupling. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2020, vol. 64, No 6, pp. 85-93. https://doi.org/10.20542/0131-2227-2020-64-6-85-93



Comments (0)

No comments

Add comment







Indexed
 
Current Issue
2021, vol. 65, No. 8

Topical Themes of the Issue:

  • Pacific Asia: Prospects for Development 
  • Contemporary Competition: Process or Result?
  • China in Global Capital Markets 
  • Servitization of Industry: New Evidence
  • COVID-19 Pandemic as a Challenge to Franco-German Leadership in the EU
View This Issue (2021, vol. 65, No. 8)
Submit an Article
Announcement
Dear authors!
In order to avoid the multiplicity of copyright profiles and to unambiguously identify your works in the international and domestic databases of scientific citation while submitting manuscripts to our journal please specify your ORCID.

Dear readers!
Please note that free access to full-text issues of the Journal is being opened at our WEB-site after 6 months of the date of publications.The work on deepening the open archive of full-text issues will be continued.


Dear colleagues, authors and readers!
We kindly request you to turn to editor-in-chief and executive secretary directly concerning reviewing scientific publications in our journal. Only editor-in-chief takes decision on order and publication the reviews!

Dear readers!
This is to inform the researchers of the Institute of World Economy and International Relations that electronic versions of the IV issue of 2020 and I issue of 2021 of French magazine Politique étrangère are now available. Those who are interested, please personally address to the editorial staff of MEMO Journal (room 18-17) with an electronic media.
NEW SECTION

In response to the challenges of our time the Editorial board continues to open new thematic rubrics:

“World Energy Sector after Pandemic”. We plan to publish articles presenting in-depth analysis of influence of Pandemic on the global energy sector and forecasts of further developments in its various branches.

“Civilization processes of modern development” is a new rubric opened by MEMO Journal in 2020. It will be devoted to the analysis of the influence of civilizational factors and inter-civilizational interactions on the political and socio-economic development of the world at whole, regions and countries.

“Africa today and tomorrow”The rubric devoted to contemporary issues of Africa which is attracting growing interest of the world's leading actors. We plan to publish the articles analyzing the status of statehood, socio-economic and political development of the countries of Black continent, as well as the integration processes between them.

CONTEST!

"World Eonomy and International Relations" announces a contest for the best joint academic publications of domestic and foreign researchers and experts in topical issues of the world economy and international relations. The winners will be selected according to the results of peer reviewing and discussion at the Editorial Board. The articles will be published in priority order.

SUBSCRIBE TO THE JOURNAL

The print version of “World Economy and International Relations” journal is distributed by advance subscription only, and is not offered for retail sale. To subscribe please address to any post office in Russia by referring to the Federal Postal Service Union Catalogue, section “ARSMI”, the journal index is 70542. The subscription may be made for the whole subscription period or starting from any nearest available month for desired number of issues.

To purchase the full-text electronic version of the journal’s issue/article please address to the WEB portal of Scientific electronic library eLIBRARY.ru or URL: https://press.gaugn.ru/.

In journal
Years
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 |

The author’s opinions may not coincide with the position of editorial