A Study on Causes of the U.S.-China Trade Conflict: Its Future and Impact on the Trading System in East Asia

2019 ◽  
Vol 31 (4) ◽  
pp. 165-189
Author(s):  
Young Mi Choi
Keyword(s):  
2019 ◽  
Vol 18 (3) ◽  
pp. 59-75
Author(s):  
Maria Joy V. Abrenica ◽  
Ricardo Rafael S. Guzman ◽  
Maria Socorro Gochoco-Bautista

This study uses the Caliendo and Parro ( 2015 ) multi-sector, multi-country, general equilibrium Ricardian trade model with national and international input-output linkages to assess the impact on welfare of higher tariffs due to the U.S.–China trade war in the case of the Philippines. A sample of 65 countries including a constructed rest of the world is used, with 31 ICIO tradeable and non-tradeable sectors and 2015 as the base year. The constructed scenario is of the U.S.–China tariff tit-for-tat and retaliatory measures taken by Mexico, Canada, EU, Russia, and Turkey against the United States during 2018. The findings show that the Philippines and others in the sidelines could incur larger welfare losses than those directly involved in the conflict, in contrast with the sanguine prediction of other models.


2015 ◽  
Vol 01 (01) ◽  
pp. 59-84 ◽  
Author(s):  
Dong Wang

One of the key questions for understanding the future trajectory of regional order is whether or not China is trying to push the United States out of East Asia and build a China-dominated regional order. Some Western analysts accuse China of pursuing the Monroe Doctrine and excluding the United States from the region. This article argues that the Western discourse of China practicing the Monroe Doctrine is a misplaced characterization of China's behavior. Rather than having intention of pushing the United States out of East Asia and build a China-dominated regional order, China is pursuing a hedging strategy that aims at minimizing strategic risks, increasing freedom of action, diversifying strategic options, and shaping the U.S.' preferences and choices. This can be exemplified in five issue areas: China's ties with the Association of Southeast Asian Nations (ASEAN), the Shanghai Cooperation Organization (SCO) and China's foreign policy activism, China-Russia relations, the Conference on Interactions and Confidence-Building Measures in Asia (CICA) and the New Asian Security Concept, as well as China-U.S. relations. Beijing has explicitly acknowledged the U.S. predominance in the international system and reiterated its willingness to participate in and reform the existing system. It concludes by suggesting that, for a more peaceful future to emerge in East Asia, the United States and China, as an incumbent power and a rising power, will have to accommodate each other, and negotiate and renegotiate the boundaries of their relative power, as well as their respective roles in the future regional order where Beijing and Washington would learn to share responsibilities and leadership.


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