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Sino-American Trade War and Its Impact

The moment that the American president-elect, Joe Biden, assumes power and makes the seeming easy pronouncement to abide by the climate agreement, retain membership in the World Trade Organization, and seek to improve free and fair trade among nations, it will encounter three major foreign-strategy concerns. In order of priority, the issues encompass China, China, and China (Subramanian, 2020). The challenge that will confront Joe Biden’s administration is that Chinese have been increasingly deviant to maintain collaboration, highly successful to overlook, and strongly linked to disconnect easily. About twenty years ago, the US and other developed countries worldwide, as they enhance their affluence, would loosen economic and political restrictions while upholding benevolence in its global image. Regarding the ensuing implicit contract, exemplified in China’s World Trade Organization agreement, member states sought to promote the availability of the market for Chinese products. In return, China promised to support the development and transparency of its economic endeavors while adhering to international regulations. Therefore, countries across the globe appear to have mislaid the China bet.

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Even in practices where China has upheld the concerns of the agreement, it has infringed the spirit. Coupled with numerous nations around the world, Joe Biden’s administration is thereby permitted to reconsider the contract. The world should react through organizing and implementing regulations on the management of the rate of exchange. Where there is an obscure connection between commercial units and states, similar to the case of China, the depiction of undue intervention ought to be broadened to encompass foreign-exchange acquisitions by US-owned financial institutions, in addition to the central bank. Joe Biden should initially encourage China to plan for the renegotiation of the agreement (Subramanian, 2020). This would necessitate an immediate eradication of President trump’s independent costs on the requirement for Chinese imports.

Biden enjoys the multilateral alternative of setting the stage for reconsideration endeavors as part of the approach to safeguard the World Trade Organization that has been deteriorating mainly due to the aggression of Trump towards it. An underlying challenge is that China, being a member of the World Trade Organization with a considerable reputation, has to approve the underlying changes. Therefore, Biden’s administration should think carefully concerning the trade path that President Trump rejected when he removed the United States from the practices of Trans-Pacific Partnership. Retorting to its successor, an intensive and Progressive Agreement for Trans-Pacific Partnership should allow America to incorporate more intensively with other countries in Asia and Europe (Subramanian, 2020). This reduces the reliance of the US on China while increasing the actual exclusion costs. Under whatever circumstance, Biden should not build any misapprehensions. China is exceedingly fundamental to overlook, but current problems resist the effortless realization of solutions. Hence, the US and other countries around the world should get ready for a lengthy process and tough times.


This study discusses how the China-US trade war has negatively affected free and fair trade, particularly between the two countries. This war marks a present economic concern between the US and China. In 2018, President Trump started reinstating taxes and other trade hindrances with China to compel the nation to abandon what the US considered unfair trade progressions. President Trump’s regime affirmed that the existing policies might lead to a China-US trade shortfall (Subramanian, 2020). Nonetheless, the Chinese administration calls for the transfer of American expertise to China. In reaction to the American trade barriers, the Chinese administration has suspected President Trump of supporting protectionism.

Importance of The Problem to the International Community

Addressing hindrances to free and fair trade should be carefully addressed to avoid negative effects on the international community. Free and fair trade establishes a trading approach that seeks complement and support instead of undermining the interests of global trading practices. Nevertheless, tackling the arising trade barriers necessitates the US (including Biden’s administration) to ensure more trade opening. Chinese are more reliant on and incorporated with arising trade concerns with America. However, Trump’s rejection of the Trans-Pacific Partnership left them devoid of suitable support for the management of economic relations. After Trump, and with the assumption to power by Biden, Asian nations should do everything possible or furtively anticipate that America and Europe should improve their trade relations with China (Subramanian, 2020). The technique employed by President Trump has failed attributable to most countries becoming overly reliant on China to ensure the eradication of restrictive trade barricades. Nonetheless, triumph would be exceedingly expensive since the integrity of the international trading system could be decimated hence destroying more than fifty years of global efforts. The source used is credible since it is from a reputable source and is less than one month old.


The trade war between the US and China has negatively influenced the economic systems of both countries. There could be increased costs for customers in the US and an increment of monetary difficulty for traders. Among the Chinese, the US-China trade wars and barriers have led to sluggishness in the level of economic and manufacturing output. Most American corporations have relocated their supply chains to other countries, especially in Asia. Despite Joe Biden being the current president-elect, mounting fears signify that the China-US trade wars might cause economic decoupling.


Subramanian, A. (2020). US should rewrite the China trade contract. Business Standard. Web.

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