US-China trade relations: causes of crises and prospects

Abstract

The article analyzes the crisis in US-China trade relations, turning into a trade war between two countries. It is shown that over the last almost 20 years, aft er China’s joining the WTO in 2001, the scale and significance of mutual cooperation has constantly grown – two countries became the most important trade partners. Because of expanding US exports to China many jobs were created in the highly technological sector of the US economy, while increased imports of cheap Chinese consumer goods resulted in lower inflation in the USA. However, the US view of China has progressively evolved into seeing China less as partner and more as a competitor and even as geopolitical threat. The negative estimation of China’s role in trade relations with the USA was culminating in the position taken by the Trump administration. Such negative aspects of mutual trade as large trade deficit, reduction in jobs in the US manufacturing, unfair trade practices are manifested by Trump’s administration. The article reviews the major US complaints towards China in international trade and economic spheres. US concerns about China’s economic practices are particularly focused now on Chinese efforts to obtain access to US technology, among other claims, unreasonable favours provided to Chinese companies - government subsidies and low taxes. The author examines the American sanctions against China in connection with these claims and comes to the conclusion that the US steps have very contradictory consequences also for the US economy. Therefore, it is underlined that the US-Chinese economic relations entered a new stage characterized by strengthening competition and growing contradictions between the countries in economic and technological spheres.