The Current Dynamics of US-China Trade and its Implications for the Developing Countries

Abstract

There has been a lot of acclaim for Presidents Trump and Xi Jinping's strong friendship, as well as support for improving US-Chinese relations. Both leaders can take a variety of steps to safeguard their connections without jeopardising their stated objectives. The causes for the worsening of relations are a source of contention between the two countries. Frustration is growing in the United States as a result of China's apparent disregard for international pleas for Beijing to change its unfair economic practises. Due to the worsening of relations between the two countries, both leaders must make a decision. By portraying the other as the problem, they can achieve their short-term political objectives. The most effective way for Washington to influence how Beijing frames its interests is through regular meetings between leaders. Preventing an unforeseen escalation in tensions may be a major priority for both presidents. Assume that neither side sees an advantage in starting a dispute with the other to reduce the chance of escalation. As a result, the scope of this work is somewhat constrained. That is the goal of this report: to identify tangible initiatives that both governments may take to stabilise their bilateral relationship and avoid a Cold War-style rivalry that benefits neither side but costs both a lot of money. Antagonizing each other in this way increases the potential of conflict and obstructs efforts to address shared problems.