TherelationbetweenChinaandtheUnitedStatesisarguablythemostimportantbilateralrelationintheworldtoday.TheU.S.andChinaarerespectivelythelargestandthesecondlargesteconomiesintheworld.Theyarealsorespectivelythelargestandthesecondlargesttradingnationsintheworldaswellaseachother’smostimportanttradingpartner.IfChinaandtheU.S.worktogetheraspartnerstowardsacommongoal,manythingsarepossible.However,thereexistsignificantfrictionandpotentialconflictintheireconomicrelations.ThelargeandpersistentU.S.-Chinabilateraltradedeficitisoneoftheproblems.
ItisessentialtoknowthetruestateoftheChina-U.S.tradebalancebeforeeffectivesolutionscanbedevisedtonarrowthetradesurplusordeficit.Theimpactsandpotentialimpactsofthe2018tradewarbetweenChinaandtheU.S.onthetwoeconomiesareanalysedanddiscussed.Thelongtermforcesthatunderlietheeconomicrelationsbetweenthetwocountriesbeyondthe2018tradewarareexamined.Inthisconnection,howa“newtypeofmajor-powerrelation”betweenthetwocountriescanhelptokeepthecompetitionfriendlyandavertawarbetweenthemisexplored.
TRADE ECONOMIC HOWA CHINA FUTURE
