China-US Trade War Unveiled: Analyzing the Root Causes and Effects

School of International Economics, China Foreign Affairs University, Beijing, 100000, China

^* Corresponding author: maidi@mail.cfau.edu.cn

Abstract

The China-US trade war has emerged as one of the most significant and complex issue in contemporary international trade. It affects not only the cooperation between the two countries, but also the global economy. Therefore, the analysis of China-US trade war has significant meaning in understanding the global trading system and making economic forecasts. This paper analyses the causes of trade war from the perspective of trade deficit, globalization, and property rights, indicating that the US started trade war for its own interest and felt the stress from the development of China. Apart from causes, the effects are also crucial. This paper analyses the import and export volume, investment effect, economic effect, and political effect, showing that the impacts of China-US trade war are widespread. Based on the analysis above, this paper gives several suggestions in the hope that China and US could strengthen exchange and cooperation, reduce trade disputes, and contribute to the development of global economy.