Trade war between China and The United States of America

Ana Martinez Felizola Ana Elena (2019) Trade war between China and The United States of America. Faculty of International Management and Business.

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Since January 2018 when The United States of America started a trade war with China, the world is experiencing a commercial tension due to the tariffs imposed between both countries. The size and the importance of both countries in the world economy and their role in the supply chain of goods, make of this dispute a relevant global problem. The main causes of the trade war and the current escalation of high tariffs can be explained by The United States claims against China about the theft of intellectual property rights due to forced technological transfers and their desire to reduce the current trade deficit. The main objective of this research is to analyze the impacts of long-term deterioration of the international trade relations between The United States and China. Moreover, it aims to understand the international trade relations between both countries; analyses the possible outcomes of the trade war; and identify the winners and losers from this conflict. First, the data collection was conducted using quantitative sources from international trade statistics and financial services databases. To analyse the impacts of this conflict some international trade indicators were studied: imports, exports, trade balances, commodity export dependence and performance, the composition of trade flows in goods across regions, values and growth rates; and the percentage of utilization of the free trade agreements. Moreover, the international prices of the main trade war’s commodities and the factors that impact companies sourcing cost for them were discussed. Second, qualitative data from sources like journals, association industries and chambers of commerce, and scientific papers were used to measure the impact of tariffs in terms of non-trade barriers, companies’ business strategy, sourcing relocation initiatives, and new emerging actors. Analysis of the research reflects that the United States America is losing the trade war while China is being less affected. In contrast, other countries are getting benefits. For example, South East Asian countries are increasing their role as an emerging market for the supply chain of multinational companies. Moreover, the trade war is distorting global trade flows; increasing production cost and the final price of products and reducing companies’ profits.

English title

Trade war between China and The United States of America


Budapest Business School


Faculty of International Management and Business


Budapest Business School - Faculty of International Management and Business




International relations MA


Konzulens neve
Konzulens típusa
Assignment, Scientific qualification, Institution
Dr Judit Szilagyi

Item Type: Thesis (UNSPECIFIED)
Uncontrolled Keywords: Trade war, China and The Unites States, International trade
Depositing User: Lőrincz Andrea
Date Deposited: 2019. May. 06. 09:30
Last Modified: 2019. May. 06. 09:30

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