Volume 03 Issue 01-2023
29
International Journal of Advance Scientific Research
(ISSN
–
2750-1396)
VOLUME
03
I
SSUE
01
Pages:
29-34
SJIF
I
MPACT
FACTOR
(2021:
5.478
)
(2022:
5.636
)
A
BSTRACT
This article examines the relationship between China and the United States, being the two largest
economies in the world, for 6 years they have been at the center of a trade conflict, which could soon
develop into a trade war.
K
EYWORDS
The largest economies of the world, benefits and needs, trade conflict, "chimerica".
I
NTRODUCTION
Starting in 2018, the United States of America
began to wage a protectionist war against China,
which is its main trading partner. Bilateral trade
between these countries was $683 billion in
2018, of which $120 billion and $563 billion were
US exports and imports, respectively, according
1
research.org/publication/us-china-trade-war-
to the International Trade Center (ITC).
1
At that
time, incumbent President Donald Trump
launched a trade conflict by threatening to
impose tens of billions of dollars in new tariffs on
China's imports unless China in turn lowered its
tariffs, gave American companies easier access to
economic-causes-and-
consequences/?lang=ru
Journal
Website:
http://sciencebring.co
m/index.php/ijasr
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Research Article
USA AND CHINA: RELATIONS IN INTERNATIONAL TRADE
Submission Date:
January 20, 2023,
Accepted Date:
January 25, 2023,
Published Date:
January 30, 2023
Crossref doi:
https://doi.org/10.37547/ijasr-03-01-06
Lyudmila Olegovna Popova
Tashkent State University Of Oriental Studies, Uzbekistan
Volume 03 Issue 01-2023
30
International Journal of Advance Scientific Research
(ISSN
–
2750-1396)
VOLUME
03
I
SSUE
01
Pages:
29-34
SJIF
I
MPACT
FACTOR
(2021:
5.478
)
(2022:
5.636
)
the Chinese market, and imported more American
products. In turn, China responded with threats
of billions of dollars in tariffs on American
products. This led to the fact that after the
imposition of duties on goods, the amount
amounted to 68 billion dollars.
2
"Trump's
decision is a trade war against China, Wei Jianguo
told Bloomberg."
Since 1783, when the Revolutionary War ended,
Americans have tried to make their fortune in the
Chinese market after American trade was freed
from British control. Even back then, China was
hesitant, trying to close its doors to foreign trade,
preferring to be self-sufficient. He put forward
various restrictions over time, such as restricting
trade with the West in the Guangzhou area, near
Hong Kong, and insisting that only silver be
accepted as payment. American merchants
struggled to find products that China would
prefer to buy. They sold mostly ginseng and fur
to the Chinese, and instead made more money by
selling products of Chinese origin to American
consumers. Since then, China has come a long and
difficult way, now it is the largest trading country
in the world. It exports more than any country,
while its imports are second only to the United
States. Thus, exports from China in the first 11
months of 2022 increased by 9% to 3.29 trillion.
dollars, imports also increased by 2% to 2.49
trillion. dollars. China's desire to be self-reliant is
still very strong, which to some extent explains
why China restricts market access for foreign
2
https://biteffect.net/ru/torgovaja-vojna-
companies, imposes high tariffs on foreign
products, and turns a blind eye to intellectual
property violations by Chinese companies.
History helps explain this mentality.
The Chinese people still remember the period
when their country was forced to open up to trade
with Western countries. In the 19th century,
European countries used their military power to
open up the Chinese market, just as the US had
opened the borders of Japan. To earn hard
currency from China, the Brits and Americans
smuggled opium into China, harming the Chinese
people with drugs. Meanwhile, Japan, in turn,
forced China to sign agreements that were
unequal,
allowing
foreigners
to
create
autonomous economic bases in the country. The
previous 100 years of China being exploited by
other countries and the recent decades mired in
communist economic turmoil have instilled in the
Chinese people the idea that China is vulnerable,
needs protection, and must catch up with
stronger nations. It is also fueled by the
traditional Chinese belief that the most astute
trader in the market deserves the best deal and
outcome. People who have ever visited China
have felt the influence of this mentality while
shopping. Many street markets, including the
famous Silk Market in Beijing, do not list food
prices. Instead, the buyer and seller are playing a
game of trying to get the best deal for them.
Sellers offer a price that is much higher than the
price of the product itself. Buyers, at least those
Volume 03 Issue 01-2023
31
International Journal of Advance Scientific Research
(ISSN
–
2750-1396)
VOLUME
03
I
SSUE
01
Pages:
29-34
SJIF
I
MPACT
FACTOR
(2021:
5.478
)
(2022:
5.636
)
who are more experienced, offer a much lower
price than that offered by the seller. The seller
almost always agrees with the buyer, sometimes
even with feigned disapproval, if suddenly the
buyer wants to add some money. This is all a
feigned scene, since the seller will never lose
money. If everything goes well, in 99 cases out of
100, both parties laugh and act like best friends,
because they understood each other perfectly and
both got what they wanted.
For years, this has been lost in trade between the
US and China. In their quest to earn from each
other, the Americans and Chinese forgot to make
each other feel like they were getting enough.
China can remind the US that its companies have
made quite huge profits by making their products
cheap and high quality in China, not to mention
pollution. China produces a fairly large volume of
consumer goods at a lower cost than other
countries, including the US, are attracted by low
prices. Most economists believe that China's
competitive pricing comes down to the influence
of 2 main factors:
1.
Lower standard of living, which allows
workers to pay lower wages.
2.
An exchange rate that is partially pegged
to the dollar.
The above explains the main reasons why there is
a trade deficit, US exports to China are only worth
$87 billion, imports from China are $382.1 billion,
so a $294.5 billion difference creates the
conditions for a deficit
3
.
US-PRC merchandise trade (in billion dollars)
from 2010 to 2019.
Year
US export
US import
Trade balance
2010
91,9
365,0
-273,3
2011
104,1
399,4
-295,3
2012
110,5
425,6
-315,1
2013
121,7
440,4
-318,7
2014
123,7
468,5
-344,8
2015
115,9
483,2
-367,3
2016
115,6
462,6
-347,0
2017
130,4
505,6
-375,2
2018
120,1
539,7
-419,5
2019
97,7
418,6
-320,8
3
Volume 03 Issue 01-2023
32
International Journal of Advance Scientific Research
(ISSN
–
2750-1396)
VOLUME
03
I
SSUE
01
Pages:
29-34
SJIF
I
MPACT
FACTOR
(2021:
5.478
)
(2022:
5.636
)
But the United States can also remind China of
what they have, such as Boeing airliners; China is
buying them in huge quantities. Beijing could do
well by reminding the US that high-spenders
American consumers have benefited from
cheaper goods imported from China (shoes,
clothes, toys and other goods). The US, in turn,
can remind China that it is greatly benefiting from
low US tariffs. And that, despite the historical
delusions of Western powers, China is no longer a
victim and needs to practice fair market play as a
major trading nation. It will take quite a long time
to bring both sides’ closer to trust and
understanding. But former US President Trump
knew how to negotiate with the Chinese. At a time
when the trade conflict looked like it could
escalate into a war, after the US President
imposed $100 billion in tariffs on Chinese goods,
4
he tweeted that he and President Xi will always
be friends,
5
despite the fact that happens with
their disputes about deals. One benefit of this
trade dispute is that the world's second largest
economy may finally realize that it is no longer
powerless. Perhaps that is why, in his 2018
4
Pavel Kazarnovsky. Trump threatened
China with additional duties on $100 billion
worth of goods [Electronic resource]. –
Access
mode:
https://www.rbc.ru/politics/06/04/2018/5ac6
ac3a9a7947dc08f0c003 (date of access:
05/18/18)
5
RIA Novosti // Trump promised to remain
friends with Xi Jinping [Electronic
resource]. – Access mode:
speech at the Boao Economic Development
Forum, the Chinese President said that China
would lower import tariffs, increase imports,
continue to protect intellectual property rights,
and increase market access.
6
But there are also
disadvantages, since China is the largest buyer of
oil, and due to the slowdown in production, the
demand for oil decreases, which pushes the price
to fall. China has become convinced that it needs
to
develop
microelectronics,
industrial
engineering and preserve firms that violate US
intellectual property rights, thus China has gone
beyond the "niche" assigned to it. The Trump
administration launched an offensive against
China on May 10, 2019, raising tariffs on imported
goods from China from 10% to 25%, this measure
covered annual imports, which amounted to 200
billion dollars. dollars. Chimerica (as many
professors called the supposed unbreakable trade
and socio-political connection between China and
the United States) was over. China responded to
the threat of American measures by publishing a
list of 106 commodity items for which restrictions
were noted, namely aircraft, cars, chemical
https://ria.ru/economy/20180408/151816768
6.html (date of access: 05/18/18)
6
Portal of Hainan Island // Xi Jinping:
quotes from BAF-2018 [Electronic
resource]. – Access mode:
https://hainanlife.ru/hainan_today/news_hai
nan/si_tszinpin_tsitaty_s_baf_2018_358795/
(date of access: 05/18/18)
Volume 03 Issue 01-2023
33
International Journal of Advance Scientific Research
(ISSN
–
2750-1396)
VOLUME
03
I
SSUE
01
Pages:
29-34
SJIF
I
MPACT
FACTOR
(2021:
5.478
)
(2022:
5.636
)
products, agricultural products, and so on. The
duty on them was 25% and affected the volume of
exports from the United States for 50 billion
dollars. If the trade war against China had
reached its limit, Beijing could release American
intellectual property, which would have caused,
according to various estimates, an initial loss of $
10 trillion to the United States. dollars,
7
this
includes the fall in the stock market and the loss
of creditors. America also cannot refuse Chinese
goods, since this will hit the mass consumer, who
is not ready for this. There is simply nothing to
replace goods with; this is actually the true
strength of China.
American and foreign researchers of the trade
war between China and the United States do not
see globalization in it, although at some point it
caused damage to both countries. Thus, the trade
turnover between China and the United States in
2019 reached 541.2 billion dollars, having
decreased by 14.6% compared to 2018. However,
already in 2020, despite the “corona virus” crisis,
it grew by 8.3%, amounting to $586.72 billion.
2021 brought new growth in trade; Chinese
imports to the states grew faster than the supply
of American products to China. In 2021, China's
foreign trade volume first exceeded $5 trillion.
dollars, and soon reached the mark of 6 trillion.
dollars. If trade between the 2 countries becomes
more balanced, both countries can benefit from a
warm relationship.
7
ttps://tass.ru/opinions/13571599/amp
R
EFERENCES
1.
https://www.eurasian-
research.org/publication/us-china-trade-
war-economic-causes-and-
consequences/?lang=ru
2.
https://biteffect.net/ru/torgovaja-vojna-
mezhdu-ssha-i-kitaem/
3.
https://science-
economy.ru/ru/article/view?id=1064
4.
Pavel Kazarnovsky. Trump threatened
China with additional duties on $100
billion worth of goods [Electronic
resource].
–
Access
mode:
https://www.rbc.ru/politics/06/04/201
8/5ac6ac3a9a7947dc08f0c003 (date of
access: 05/18/18)
5.
RIA Novosti // Trump promised to remain
friends with Xi Jinping [Electronic
resource].
–
Access
mode:
https://ria.ru/economy/20180408/1518
167686.html (date of access: 05/18/18)
6.
Portal of Hainan Island // Xi Jinping:
quotes from BAF-2018 [Electronic
resource].
–
Access
mode:
https://hainanlife.ru/hainan_today/news
_hainan/si_tszinpin_tsitaty_s_baf_2018_35
8795/ (date of access: 05/18/18)
7.
https://tass.ru/opinions/13571599/amp
8.
Khalimovich, O. N., Rasuljanovna, I. N., &
Shakarovich, G. I. (2020). The Purpose and
Outcome of Diplomatic Missions in the II-I
