TITLE:
Sino-American Clash of Hegemony: An Analysis of US-China Trade War
AUTHORS:
Kammogne Josiane Sider
KEYWORDS:
China-US Relations, Trade War, Hegemony, Clash of Hegemony
JOURNAL NAME:
Open Journal of Political Science,
Vol.10 No.1,
December
16,
2019
ABSTRACT: In economic history, 2018 will be remembered as the year that the US
started a trade war with China. The longtime leading hegemony is now embarking
with the rising hegemony in one of the largest trade wars in
economic history to date. US-China economic ties have expanded substantially
since China began reforming its economy and liberalizing its trade regime in
the late 1970s. According to the INVESTOPEDIA DICTIONARY, a trade war is a side
effect of protectionism that occurs when one country (Country A) raises tariffs
on another country’s (Country B) imports in retaliation for Country B raising
tariffs on Country A’s imports. As it escalates, a trade war reduces
international trade. China and the United States are engaged in a trade war as
each country continues to dispute tariffs placed on goods traded between them. US
President Donald Trump had promised in his campaign to fix China’s longtime
abuse of the broken international system and unfair practices (https://democracyjournal.org/magazine/52/trade-parade-of-broken-promises/). The economic disputes occurred before China’s entry to the World Trade
Organization but former Presidents George H. W. Bush, Bill Clinton, George W.
Bush, and Barack Obama all failed to solve the problems. In April 2018, the
United States filed a request for consultation to the World Trade Organization
in regard to concerns that China was violating intellectual property rights. In
adding various tariffs, the US administration is relying partly on Section 301
of the Trade Act of 1974 to prevent what it calls unfair trade practices and
theft of intellectual property (https://cen.acs.org/policy/intellectual-property/US-files-complaint-over-Chinas/96/i14). This
gives the president the authority to unilaterally impose fines or other penalties
on a trading partner if it is deemed to be unfairly harming US business
interests, especially if it violated international trade agreements. In August
2017, the US opened a formal investigation into attacks on the intellectual
property of the US and its allies, which cost the US alone an estimated $225 - 600 billion a year in losses. The result is
that the US believes Chinese laws undermine intellectual property rights by
forcing foreign companies to engage in joint ventures with Chinese companies,
which then gives the Chinese companies access and permission to use, improve,
copy or steal their technologies. The US also raises concerns that China fails
to recognize legitimate patents and copyrights, and discriminates against
foreign imported technology, and that China has instituted numerous non-tariff
barriers which have insulated sectors of the Chinese economy from international
competition. Thus, the trade war is seen as largely focused on intellectual
property in China, especially regarding technology. The trade war began in
earnest in July with the US levying its first round of punitive tariffs,
triggered by an investigation under Section 301 of the Trade Act into Chinese
trade and intellectual property practices (https://www.scmp.com/comment/insight-opinion/article/2142491/why-us-sanctions-zte-might-turn-out-be-best-thing-chinas).