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Begin New Search Topic Trade Wars Political Geography United States

1. The Art of Diplomacy

Author:
Bruce A. Heyman
Publication Date:
03-2019
Content Type:
Journal Article
Journal:
The Ambassador's Review
Institution:
Council of American Ambassadors
Abstract:
Seeing the words “U.S.-Canada Trade War” in headlines is hard to imagine in any year, but to see them in 2018 was jarring. How is it possible that best friends and neighbors who have had the most successful trading relationship in the world now could have an association characterized by the word war? This is hard enough for the average American or Canadian to conceive of, but it was particularly hard for me to do so, as the U.S. Ambassador to Canada until January 20, 2017. When I left Ottawa, I was confident that the U.S.-Canada relationship was strong—indeed, perhaps never stronger. In March 2016, we had a state dinner in Washington for Prime Minister Justin Trudeau, the first in nearly 20 years. Then-President Barack Obama later repaid the favor and addressed the Canadian Parliament for the first time in more than 20 years. Our two-way trading relationship was valued at a huge $670 billion per year, and while no longer our largest, it was the most balanced, with the United States having a slight but rare trade surplus in goods and services. Through an integrated supply chain, our companies and citizens worked together. On average more than 400,000 people legally crossed our 5,525-mile non-militarized border daily for work and tourism. But the U.S.-Canada relationship was and is much larger than trade. Canadian and American troops have fought and died together from the beaches of Normandy to the mountains of Afghanistan, and our countries are founding members of the North Atlantic Treaty Organization (NATO). The North American Aerospace Defense Command (NORAD)—a unique Canadian-American partnership—patrols the skies above our shared continent. Our intelligence and law enforcement agencies constantly exchange information on threats from terrorism, nuclear proliferation, espionage and complex crimes. Our two countries work together to protect the environment and provide stewardship of the magnificent Great Lakes, where cities such as Toronto and my own Chicago are located. This dense web of mutually beneficial cooperation is based on a shared set of values. Both our countries settled the vast North American continent, providing undreamt-of opportunities to millions of immigrants. Both our countries have an abiding commitment to democracy and the rule of law, and when we fall short, we make the needed changes. Beyond our countries’ being next-door neighbors, the largest number of Americans living abroad live in Canada and the largest number of Canadians living abroad live in the U.S. We are best friends, but more important, we are family.
Topic:
Diplomacy, Regional Cooperation, Culture, Trade Wars, and Trade
Political Geography:
United States, Canada, and North America

2. U.S.-China Rivalry in the Trump Era

Publication Date:
08-2019
Content Type:
Special Report
Institution:
World Politics Review
Abstract:
Integrating China into the liberal trade order was expected to have a moderating effect on Beijing. Instead, under President Xi Jinping, China has asserted its military control over the South China Sea and cracked down on domestic dissent, all while continuing to use unfair trade practices to boost its economy. As a result, a bipartisan consensus has emerged in Washington that the U.S. must rethink the assumptions underpinning its approach to China’s rise. But President Donald Trump’s confrontational approach, including a costly trade war, is unlikely to prove effective. This report provides a comprehensive look at the military and economic aspects of U.S.-China rivalry in the Trump era.
Topic:
International Trade and Finance, Military Affairs, Trade Wars, and Economic Policy
Political Geography:
United States and China

3. A World Dividing: The International Implications of the Sino-American Rift

Author:
Chas W. Freeman Jr.
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The Trump administration has declared economic war on China. The United States has raised taxes on Chinese imports to levels not seen since the Smoot–Hawley tariffs of the Great Depression. Over the course of this year, Chinese imports of American goods have decreased by 26.4 percent, while China’s exports to the United States are down 10.7 percent. Washington has embargoed exports to China of a constantly expanding list of high-tech manufactures. It seeks to block Chinese telecommunications companies from third-country markets. The United States has mounted a vigorous campaign to persuade other countries to reject Chinese investments in their infrastructure, notably in the case of 5G telecommunications networks.
Topic:
International Trade and Finance, Global Political Economy, Trade Wars, International Community, and Exports
Political Geography:
United States, China, Asia, and Global Focus

4. Rebooting U.S.-China Trade Ties: “Enter Ye Through the Narrow Gate”

Author:
Christopher K Johnson
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Nearly two weeks after the U.S. “Trade Avengers” unleashed during their visit to Beijing what one reasonably could call “trade shock and awe” with a very aggressive—if thoroughly researched and well-crafted—set of demands targeting the yawning U.S. trade deficit with China and the core of that country’s throaty industrial policy, China this week is taking its turn with the visit of Chinese Communist Party (CCP) Politburo member and Vice Premier Liu He, President Xi Jinping’s economic point man who is almost universally described as a thoughtful, pragmatic, and mild-mannered policy academic. In the interim, voices from a wide swath of official Washington have sounded the alarm about the dangers of Chinese influence operations and the presence of alleged subversives, while President Trump himself seemed to cast aside these growing concerns by suggesting via Twitter that he would ask the Commerce Department to overturn its action against the Chinese telecommunications firm ZTE—long a focus of the U.S. security community for suspected cyber espionage activity and irrefutable violations of U.S. law—in response to protests that reportedly emanated directly from President Xi. With such frenetically sustained action in such a short period of time, the fog of war seems particularly thick at the moment. As such, it seems like a good time to slow down and have a think about how we got here, what actually is going on, and, with a little bit of luck, perhaps think about some ways to craft a viable way forward. Just like milestone birthdays in one’s personal life, important political anniversaries also can incline the mind toward reflection. Next year, of course, marks the fortieth anniversary of the reestablishment of diplomatic ties between the United States and China. As such, much breath and a lot of ink have been devoted to analyzing the course of the bilateral relationship over that nearly half-century. Although certainly not a universal opinion, it seems fair, if perhaps overly reductionist, to suggest that the general conclusion among a substantial number of U.S. officials, policy analysts, and journalists has been that the consistent U.S. policy emphasis on engagement with China during those forty years was, at the end of the day, a sham. In this rendering, naïve groups of senior policymakers in succeeding U.S. administrations and in most of the U.S. China-watching community were hoodwinked by wily CCP leaders who talked the talk of integrating into the so-called U.S.-led rules-based international order, but all the while they had a secret master plan to instead subvert that order and challenge U.S. primacy throughout the globe. In a slightly less menacing (if no less absurd) version of this narrative, China was, indeed, headed generally toward this hoped for integration under the stewardship of deceased paramount leader Deng Xiaoping and his handpicked successors Jiang Zemin and Hu Jintao until Xi Jinping arrived and, through a ruthless consolidation of power, decided instead to change course in what now regularly is referred to in shorthand as Xi’s “authoritarian turn.” But this conclusion seems utterly wrongheaded when examined in the light of hard facts. On the Chinese side of the equation, for example, Deng Xiaoping may have appeared warm and cuddly when donning his cowboy hat during his famous 1979 visit to the United States, but he could be just as ruthless and grasping as any other authoritarian leader. Deng’s exceptionally courageous and dogged pursuit of the policies of reform and opening certainly are worthy of praise, but they cannot, and therefore should not, be separated from the fact that he was content to sit idly by as Chairman Mao’s loyal lieutenant as Mao decimated his political rivals during the Anti-Rightist Campaign (1957-59) and the Great Leap Forward (1958-62). Nor should we forget that Deng used every ounce of his massive personal prestige with the People’s Liberation Army to, with steely determination, rally his many reluctant commanders to execute the brutal Tiananmen crackdown of June 4, 1989. Similarly, Xi Jinping is no Jack-in-the-Box-like figure who has pulled a fast one with a sharp directional turn in the last couple of years made all the more stark after his sweeping consolidation of power at last fall’s 19th Party Congress. In fact, it is this author’s contention, as supported by a large body of written work and public commentary, that everything Xi has done over the last five years was abundantly clear, whether explicitly or in embryonic form—from the moment he was introduced to the world as China’s new top leader in the fall of 2012, as encapsulated in his call for his country to pursue the “China Dream” set on a foundation of “the great rejuvenation of the Chinese nation.” This by no means suggests the United States should express support for, or even acquiescence in, Xi’s policies, but only that it should not be reacting with the borderline hysteria that now seems to be gripping Washington.
Topic:
Security, Diplomacy, Global Political Economy, and Trade Wars
Political Geography:
United States, China, Asia, and North America

5. Trade linkages and firm value: evidence from the 2018 US-China "trade war"

Author:
Yi Huang, Chen Lin, Sibo Liu, and Heiwai Tang
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
On March 22, 2018, Trump proposed to impose tariffs on up to $50 billion of Chinese imports leading to a significant concern over the "Trade War" between the US and China. We evaluate the market responses to this event for firms in both countries, depending on their direct and indirect exposures to US-China trade. US firms that are more dependent on exports to and imports from China have lower stock and bond returns but higher default risks in the short time window around the announcement date. We also find that firms' indirect exposure to US-China trade through domestic input-output linkages affects their responses to the announcement. These findings suggest that the structure of US-China trade is much more complex than the simplistic view of global trade that engendered Trump's "Trade War" against China.
Topic:
Economics, International Cooperation, International Trade and Finance, Global Political Economy, Trade Wars, and Exports
Political Geography:
United States, China, and Asia