Research Paper (undergraduate) from the year 2014 in the subject Economics - International Economic Relations, , language: English, abstract: Between 1941 and 1991, the key significance of China to the U.S. had been one among the most lasting legends of Sino-American relationship. However, actually, China had had just a secondary significance, and its importance was in the context of crises with other nations, which had partially influenced the U.S diplomacy towards China during the 50 years. Accordingly, the cessation of the Cold War era needed the US foreign policy to reassess the significance of China. It has since become evident that future lasting stability in the Asia-Pacific area substantially rests on harmonious relationship among the U.S, Japan, and China. To the point that the three nations can join forces, they will establish a generally nonthreatening security atmosphere and manage the disputes sure to egress in the Asia-Pacific area. Otherwise, conflict and latent hostilities among the three nations will have a deeply threatening effect in the region.

The relation between China and the United States is arguably the most important bilateral relation in the world today. The U.S. and China are respectively the largest and the second largest economies in the world. They are also respectively the largest and the second largest trading nations in the world as well as each other’s most important trading partner. If China and the U.S. work together as partners towards a common goal, many things are possible. However, there exist significant friction and potential conflict in their economic relations. The large and persistent U.S.-China bilateral trade deficit is one of the problems. It is essential to know the true state of the China-U.S. trade balance before effective solutions can be devised to narrow the trade surplus or deficit. The impacts and potential impacts of the 2018 trade war between China and the U.S. on the two economies are analysed and discussed. The longterm forces that underlie the economic relations between the two countries beyond the 2018 trade war are examined. In this connection, how a “new type of major-power relation” between the two countries can help to keep the competition friendly and avert a war between them is explored. ~~~~~~~~ Lawrence J. Lau’s timely The China-U.S. Trade War and Future Economic Relations is full of careful analysis, penetrating insight and helpful suggestions from the world’s preeminent economist on this relationship. —Michael J. Boskin Tully M. Friedman Professor of Economics, Stanford University Former Chair, U.S. President’s Council of Economic Advisers This sober and systematic study of U.S.-China trade relations and of technological development in the two countries is particularly timely. Lawrence Lau is one of the world’s foremost economists working on these issues. —Dwight H. Perkins Harold Hitchings Burbank Professor of Political Economy, Emeritus Former Chair, Department of Economics, Harvard University This is a timely and penetrating analysis of the China-U.S. trade and economic relations, from its origins to its impacts and to a way forward. —Yingyi Qian Chairman of the Council, Westlake University Former Dean, School of Economics and Management, Tsinghua University Counsellor of the State Council, People’s Republic of China Lawrence Lau’s book on the current U.S.-China trade war is insightful, balanced and comprehensive; rich in data on trade, investment, science and technology. It is essential reading for anyone who wants to get past the headlines. —A. Michael Spence Nobel Laureate in Economic Sciences (2001) Senior Fellow, The Hoover Institution, Stanford University Lawrence Lau brings light in the form of rigorous honest fact-based economic analysis to a subject where most of the discussion has been heated bluster, false claims, and political rhetoric. —Lawrence H. Summers Former U.S. Secretary of the Treasury; Former President, Harvard University There is no topic more important, or more timely, or more urgent, than the China-U.S. trade war. Professor Lau is the ideal person to write about the implications of the China-U.S. trade war and the proposed resolution. —Tung Chee-Hwa Vice-Chairman, Chinese People’s Political Consultative Conference National Committee Chairman, China-U.S. Exchange Foundation The history of Sino-American relations, to a great extent, has been a shared history. Lawrence Lau’s timely and penetrating study will tell us it is still in best interest for both countries if they continue to pursue a shared journey and destination instead of parting ways. —Xu Guoqi Kerry Group Professor in Globalization History, The University of Hong Kong Author of Chinese and Americans: A Shared History This beautifully composed book uses nontechnical language to unravel the intricacies of the 2018 U.S.-China trade war, together with its long-term impact. I learned a lot from reading it. —Chen-Ning Yang Nobel Laureate in Physics (1957)

A war between China and the US would be catastrophic, deadly, and destructive. Unfortunately, it is no longer unthinkable. The relationship between the US and China, the world's two superpowers, is peculiarly volatile. It rests on a seismic fault of cultural misunderstanding, historical grievance, and ideological incompatibility. No other nations are so quick to offend and be offended. Their militaries play a dangerous game of chicken, corporations steal intellectual property, intelligence satellites peer and AI technicians plot. The capacity for either country to cross a fatal line grows daily. Former Australian Prime Minister Kevin Rudd, who has studied, lived in, and worked with China for more than forty years, is one of the very few people who can offer real insight into the mindsets of the leadership whose judgement will determine if a war will be fought. The Avoidable War demystifies the actions of both sides, explaining and translating them for the benefit of the other. Geopolitical disaster is still avoidable, but only if these two giants can find a way to coexist without betraying their core interests through what Rudd calls "managed strategic competition". Should they fail, down that path lies the possibility of a war that could rewrite the future of both countries, and the world. "A lifelong student of China, Kevin Rudd has become one of today's most thoughtful analysts of China's development. The Avoidable War focuses on the signal challenge posed by China's evolution to America and to world order. Can the US and China avoid sleepwalking into a conflict? Rudd offers constructive steps for the two powers to stabilize their relations." HENRY A. KISSINGER

The defining geopolitical contest of the twenty-first century is between China and the US. But is it avoidable? And if it happens, is the outcome already inevitable? China and America are world powers without serious rivals. They eye each other warily across the Pacific; they communicate poorly; there seems little natural empathy. A massive geopolitical contest has begun. America prizes freedom; China values freedom from chaos.America values strategic decisiveness; China values patience.America is becoming society of lasting inequality; China a meritocracy.America has abandoned multilateralism; China welcomes it. Kishore Mahbubani, a diplomat and scholar with unrivalled access to policymakers in Beijing and Washington, has written the definitive guide to the deep fault lines in the relationship, a clear-eyed assessment of the risk of any confrontation, and a bracingly honest appraisal of the strengths and weaknesses, and superpower eccentricities, of the US and China.

Distinguished experts explain the economic trends and varied political goals at work in Southeast Asia. With China’s emergence as a powerful entity in Southeast Asia, the region has become an unlikely site of conflict between two of the world’s great powers. The United States, historically regarded as the protector of Pacific Southeast Asia—consisting of nations such as Vietnam, the Philippines, Myanmar, and Malaysia—is now called upon to respond to what many would consider bullying on the part of the Chinese. These and other countries have become the economic and political engine of China. While certainly inclined to help the country’s former allies, the United States has grown undeniably closer to China in the recent decades of global interconnected economic growth. China, the United States, and the Future of Southeast Asia uncovers and delves into the complicated dynamics of this situation. Covering topics such as the controversial response to human rights violations, the effects of global economic interconnectedness, and contested sovereignty over resource-rich islands, this volume provides a modern and nuanced perspective on the state of the region. For anyone interested in understanding the evolving global balance of power, China, the United States, and the Future of Southeast Asia illuminates how countries as different as Thailand and Indonesia see the growing competition between Beijing and Washington.

Provides insight into U.S. and Chinese involvement in aid, trade, direct investment and strategic ties in Latin America In recent years, China has become the largest trading partner for more than half the countries in Latin America, and demonstrated major commitments in aid and direct investment in various parts of the region. China has also made a number of strategic commitments to countries like Nicaragua, Cuba, and Venezuela which have long-standing policies opposing U.S. influence in the region. China, the United States, and the Future of Latin America posits that this activity is a direct challenge to the role of the U.S. in Latin America and the Caribbean. Part of a three-volume series analyzing U.S.-China relations in parts of the world where neither country is dominant, this volume analyzes the interactions between the U.S., China, and Latin America. The book series has so far considered the differences in operating styles between China and the U.S. in Central Asia and Southeast Asia. This third volume unpacks the implications of competing U.S. and Chinese interests in countries such as Brazil and Argentina, and China’s commitments in Nicaragua and Venezuela. This volume draws upon a variety of policy experts, focusing on the viewpoints of South American and Caribbean scholars as well as scholars from outside states. China’s new global reach and its ambitions, as well as the U.S. response, are analyzed in detail.A nuanced examination of current complexities and future implications, China, the United States and the Future of Latin America provides readers with varied perspectives on the changing economic and strategic picture in Latin America and the Caribbean.

How the United States and China can avoid future conflict and establish stable cooperative relations After forty years of largely cooperative Sino-U.S. relations, policymakers, politicians, and pundits on both sides of the Pacific see growing tensions between the United States and China. Some go so far as to predict a future of conflict, driven by the inevitable rivalry between an established and a rising power, and urge their leaders to prepare now for a future showdown. Others argue that the deep economic interdependence between the two countries and the many areas of shared interests will lead to more collaborative relations in the coming decades. In this book, James Steinberg and Michael O'Hanlon stake out a third, less deterministic position. They argue that there are powerful domestic and international factors, especially in the military and security realms, that could well push the bilateral relationship toward an arms race and confrontation, even though both sides will be far worse off if such a future comes to pass. They contend that this pessimistic scenario can be confidently avoided only if China and the United States adopt deliberate policies designed to address the security dilemma that besets the relationship between a rising and an established power. The authors propose a set of policy proposals to achieve a sustainable, relatively cooperative relationship between the two nations, based on the concept of providing mutual strategic reassurance in such key areas as nuclear weapons and missile defense, space and cyber operations, and military basing and deployments, while also demonstrating strategic resolve to protect vital national interests, including, in the case of the United States, its commitments to regional allies.