Analysis Of Sino-US Trade Friction Under The Trump Administration

Since the establishment of diplomatic ties between China and the United States,bilateral trade between China and the United States has developed rapidly.China is the largest trading partner of the United States and the United States is China's second largest trading partner.However,with the rapidly development of Sino-U.S.bilateral trade,some unfavorable factors affecting trade between the two countries have also emerged,which has led to trade frictions between China and the United States.After Trump came to power,he launched a series of trade remedy investigations in China.In 2017,the United States launched 22 trade remedy investigations against China,involving $4.5 billion in cases.It was the country that had the most number of investigations on China's products and the highest amount involved.The U.S.government reopened the "301" investigation tool 7 years later and reopened the"232" investigation tool 16 years later.The Trump administration prevented Chinese companies from investing in the United States.In 2017,China's direct investment in the United States decreased by 36%year-on-year.The Trump administration refused to recognize China's market economy status.Under the Trump administration,trade frictions between China and the United States are even more severe.This paper analyzes the causes of the trade frictions between the United States and China under the Trump administration using a combination of qualitative research and quantitative research.From the perspective of the United States,China,and trade imbalance,this paper finds that the following reasons have caused the trade friction between China and the United States under the Trump administration:the populism of the Trump administration,the Trump administration curbs China's industrial upgrading,the gap between China and the United States continues to shrink and the Trump administration regards China as a "strategic competitor",China's dependence on US trade is relatively high,a defect in the structure of China's imports and exports to the United States and trade imbalance.Quantifying the Sino-U.S.Trade Friction with the U.S.Anti-dumping Investigation of China,the empirical results show that the growth rate of US GDP is significantly negative correlation with the US anti-dumping against China.The U.S.trade dependence on China(the ratio of U.S.imports from China to U.S.GDP),China's dependence on U.S.exports and the growth rate of U.S.exchange rate against the RMB are significant positive correlation with the U.S.anti-dumping against China.U.S.political policies significantly affect U.S.anti-dumping against China.In addition,this paper constructs an econometric model to analyze the impact of Sino-US trade friction on bilateral trade.The empirical results show that US anti-dumping against China significantly affects Sino-U.S.bilateral trade.In addition,Sino-US GDP,U.S.population,Sino-U.S.trade openness,etc.are also significant affecting the bilateral trade.The impact of the RMB exchange rate on Sino-U.S.bilateral trade is not significant.This paper proposes the following suggestions to improve trade frictions between China and the United States and promote the development of Sino-U.S.bilateral trade,including adopting a diversification strategy for foreign trade markets,accelerating industrial restructuring and improving foreign trade commodity structure,perfecting the RMB exchange rate formation mechanism,expanding market opening and promoting mutual investment between China and the United States,and using WTO dispute settlement mechanisms.