China Development Studies

CHINA'S POLICIES UNDER THE US-CHINA TRADE WAR By [Student's Name] Course Professor Name of School City and State Date Background The US-China trade war is one of the latest geopolitical and economic battles. It was initiated in 2018 by then-President Donald Trump and his administration as one way of dealing with various issues, which included trying to fix the trade imbalance with China, complaints of intellectual property theft and forced technology transfers (Fajgelbaum and Khandelwal, 2021, p. 1). It was why China put tariffs on US-originated goods- the start of an escalation spiral that rumbled down the global economy. While these steps were taken to reduce the trade deficit, they persisted in more profound issues of technological leadership, global market dominance, and national security concerns (Dang et al., 2023, p. 5). Conversely, the trade war presented significant economic challenges for China. US tariffs hit China's export-oriented industries, disrupted global supply chains, and affected economic growth (Alessandria et al., 2024, p. 15). These negative impacts due to the trade war forced the Chinese government to reconsider its financial strategy and develop policy measures that could keep the negative impacts minimal in the longer term. The responses from China were multi-layered and involved boosting domestic consumption, promoting self-sufficiency in technology, increasing trade with diversified partners, and fortifying regional trade alliances through binding partnerships such as the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP) (Peng et al., 2020, p. 6). This research is motivated by the desire to understand the strategic responses of the Chinese government to these challenges. The proposed study, therefore, extends this examination of China's policy changes to bring forth how China adapted its economic strategies to protect its interest during the trade war and set grounds for its long-run growth. The trade war is not a simple, aggressive conflict on two sides; it means a balance change in the global economy. China seeks to decrease its dependence on the US market and become an increasingly influential actor in international trade (Hu, Zhang and Zhu, 2024, p. 10). Theoretical Framework The foundation of this study is based on the theoretical underpinning of International Political Economy (IPE), a multidisciplinary approach to the understanding of the interaction at a global level between states, politics, and economics. IPE will go a long way in explaining how nations manage economic policies in reaction to external pressures like trade wars and how such a policy impinges on domestic and international political relations (Vlados, 2024, p. 7). In this light, China's policies under the US-China trade war could be framed as bracketed within a thin balance of economic nationalism, protectionism, and globalisation. The IPE framework will be applied to analyse China's strategies within a larger context of global power dynamics coupled with economic competition. A core concept of IPE is the use of economic statecraft, retrying through economic instruments-tariffs, sanctions, and so on to achieve the goals of a nation (LeBaron et al., 2020, p. 287). Against this background, this paper reviews how China has used economic statecraft to surmount its challenges with the trade war to safeguard its interests. It also contributes to understanding how a country, through exploring China's emphasis on technological self-reliance and trade diversification, can readjust its economic strategies in response to global crises. Research Questions 1. What major policy adjustments has China implemented in response to the US-China trade war? 2. How have these policies impacted China's economic stability and growth, especially in key sectors such as technology and manufacturing? 3. What are the long-term implications of China's policies on its global economic position, particularly in relation to trade alliances and international diplomacy? 4. How does China's response to the trade war contribute to its broader goal of reducing reliance on the US and enhancing its technological capabilities? Methodology Moreover, with the US-China trade war, this research will be supported through a mixed-method approach, including qualitative and quantitative research. It can comprehensively analyse the shifts in China's policies, their impacts on the domestic and international economy, and potential long-term outcomes. Subjects The primary sources of this research will primarily be official policy documents from the Chinese government, economic data from international organisations like the World Bank and the International Monetary Fund, and trade statistics derived from the Ministry of Commerce of China. In this respect, supplementation with industry reports and scholarly articles regarding the economic impacts of the trade war has been instrumental. Other expert groups, including the Chinese economic policy, trade relationship specialists, and international political economy, will also be in a position to serve as rich sources of data. Semi structured interviews will also be held with economists, political analysts, and policymakers specialising in Chinese trade policy and its international ramifications. Data Collection Procedures This study will rely on both primary and secondary data sources: Primary Data: The data will primarily be obtained from primary policy documents by the Chinese government, and it will include but not limit itself to economic plans, trade agreements, and official statements by Chinese leaders in the trade war. These primary documents offer firsthand evidence behind policy decisions and their intended outcomes (Koltay, 2020, p. 2). These documents will shed light on the "whys" regarding policy decisions and their stipulated outcomes from China. Complimentary interviews with experts in the field will provide insight into how these strategies have served China. Secondary Data: The secondary data, referring to information collected by somebody else but for a purpose other than the one experienced today (Taherdoost, 2021, p. 11), will be sourced from various previous rese...