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The Trade War of the Century: China vs. the United States
Historically, the term “trade war” has referred to “unusual restrictive measures” issued by at least two states that affect the import of goods and services, therefore affecting the economy of at least one nation.
The US-China trade war will shape the century. The relationship between the US and China will affect us all.
The US trade policy has evolved drastically since it has become the largest economy in the world at the end of the 19th century.
It has become more globalized and dependent on members of the World Trade Organization (WTO).
Since the end of the Cold War, the US has enacted trade policies that promote free trade and globalization. However, the US is not the only nation that benefited from a globalized trade market.
In fact, when China entered the WTO in 2001, it experienced a historic economic breakthrough. From 2000 to 20008, China’s export volume soared from US$ 250 billion, 3.9 percent of global export, to US$ 1.43 trillion, 8.9 percent of global exports.
Following the 2008 global financial crisis, the US started focusing on regional trade policies, including the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership in 2011 and 2013.
