The impact and implication of the COVID-19 on the trade relationship between China and the United States: the political economy perspectives

Abstract

The trade dispute between China and the US is not a recent phenomenon. The US administration argues that increased tariffs and fairer trade, investment, and technology relationships are necessary to reduce large and rising trade deficits with China and protect national security and the intellectual property of the US businesses. Recently, however, the COVID-19 Pandemic is causing a massive impact on trade relations between the two economies. We believe that any analysis should go beyond mere economic reasoning and traditional statistics to assess the full implications of the COVID-19 on fighting for the order. It is an undeniable fact that China has encroached on the political, trade, and economic hegemony that the US has marked for decades. The rise of China has been recognised as the most impactful phenomenon in the international political, economic, and trade relations in the new millennium.

Keywords:

• COVID-19
• America
• China
• trade war
• international political economy

Acknowledgement

The authors acknowledge the financial support received for this research from the International University of Japan and thank Sumudu Walakuluge for his excellent research assistance. The constructive comments of annynimous reviewers are greatfully acknowledged.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 According to the international labor organization “55 million domestic workers significantly impacted by COVID-19”. https://www.ilo.org/wcmsp5/groups/public/–-ed_protect/–-protrav/–-travail/documents/publication/wcms_747961.pdf. Accessed on 25 June 2021.

2 Benzinga.com (2019), Global trade flows decline even as capital and people flows stay resilient, Says DHL Report, 6 December 2019.

3 International Organization for Migration (2020), World Migration Report 2020.

4 https://unctad.org/en/PublicationsLibrary/ditcinf2020d1.pdf. Accessed on 01 August 2020.

5 https://www.wto.org/english/news_e/pres20_e/pr858_e.htm

Additional information

Notes on contributors

N. S. Cooray

Dr. N. S. Cooray is a Professor at the International University of Japan, Niigata, Japan.

Thangavel Palanivel

Dr. Thangavel Palanivel is a Senior Advisor, Global Policy Network Bureau for Policy and Programme Support United Nations Development Programme, New York, NY, United States of America.