China-U.S. Trade War and Future Economic Relations

The Thucydides Trap suggests that a China-U.S. trade war is inevitable as a rising power challenges the dominance of an established power. This book argues that while the effects of the trade war are not negligible, they are relatively manageable for both nations. The potential economic and technological competition between China and the U.S. is likely to become the new normal, and it is up to each government to battle against xenophobia and enhance economic interdependence through better coordination and fully utilizing each other's underutilized resources.

Format: Hardback
Length: 224 pages
Publication date: 08 December 2021
Publisher: The Chinese University Press

Some individuals may hold the belief that a China-U.S. trade war is inevitable as a rising power challenges the dominance of an established power. Given their status as the largest and second-largest trading nations globally, the United States and China are each other's most crucial trade partners.

In his book, Lau examines various economic statistics from the past few decades and demonstrates that while the real effects of the China-U.S. trade war in 2018 are not insignificant, they are relatively manageable for both nations. There is no need to panic despite the psychological impact on the Chinese stock markets and the Renminbi exchange rate. Behind the trade war lies the potential economic and technological competition between China and the United States, which is likely to become the new normal.

It is up to each government to combat the rise of xenophobia by recognizing the fact that China-U.S. economic collaboration can be a potentially positive-sum game through improved coordination and fully utilizing each other's underutilized resources. Balancing China-U.S. trade and enhancing economic interdependence is indeed possible.

Weight: 562g
Dimension: 162 x 236 x 27 (mm)
ISBN-13: 9789882371125