There is a continuous conflict between China and the US, which is expressed in setting tariffs on one another’s products. In 2018, President Trump imposed tariffs on goods exported from China, stimulating Americans to buy local products, and this policy change became a significant trade barrier (Liu & Woo, 2018). Also, the US accused China of having unfair trade policies and the theft of intellectual property. The forced transition of American technology to China is another policy that is perceived as unfair. In turn, China claims that Trump engages in protectionism and accuses him of curbing the rise of the country as an international economic power. Despite the ongoing negotiations, both parties continue increasing tariffs. For example, in May 2019, the US imposed $200 billion at 25% of goods, and China responded by $60 billion at 25% (Palumbo & da Costa, 2019). This trade war makes a negative impact on the economies of both countries, leading to a trade deficit and higher prices.
For the US, it is possible to recommend achieving agreements on technology transition from the US to China and vice versa, which can be supported by stronger and clearer intellectual property rights. This solution would allow American companies that want to operate in China to have lower tariffs and a more favorable business environment in general. To promote a more balanced trade with China, it can be recommended to avoid a large surplus and deficit in imports compared to exports (Liu & Woo, 2018). Accordingly, the mutual reduction or delay of the imposed tariffs can be seen as another solution to the identified challenge. Although the resolution of the trade war between the US and China seems to be quite complicated, the focus on the mentioned recommendations is likely to be useful for the US.
References
Liu, T., & Woo, W. T. (2018). Understanding the US-China trade war. China Economic Journal, 11(3), 319-340.
Palumbo, D., & da Costa, A. N. (2019). Trade war: US-China trade battle in charts. BBC News. Web.