US-China Bilateral Trade Relationship: A New Approach

Abstract

Over the years, the trade relationship between the US and China has been evolving ever since it began in 1994 and has gone through a lot of tensions and standoffs with a blend of diplomatic, economic, social and political rivalries. This research paper aims to focus on the bilateral relationship between the largest economies of the world, its complexities and how important it is to manage the same. This association between the two countries not only affects the two involved but also other global powers. Therefore, to understand the connection better, it is essential to understand the 3 C’s of international relations: cooperation, conflict and competition. As this relationship escalates to become competitive in areas of trade, at the same time it also continues to be an antagonistic connection in other realms. With the onset of globalization, there have been significant gains as well as losses for both sides, helping in the creation of a massive number of job opportunities and assisting businesses and enterprises in both countries to expand rapidly. This paper also cites examples of how the US has been benefitting from trade relations and activities with China. But the outbreak of the Covid-19 pandemic has sparked a sense of war and moderations in tariffs between the two countries. The paper ends by explaining the need for a more collaborative approach to rebalancing bilateral trade ties between the US and China, and how that would be advantageous for the two involved here.