Can The U.S. Outdo China?s Competitive Resurgence?

China and The United States are scheduled to have trade talks next year following the faltering of Washington’s hard-line stand on Beijing?s recent global integration is likely to bring a different paradigm regarding power relations. It seems like the countries have reached a truce to drop hard-line stands to end the trade war.

Although it seems like they are working towards an agreement there is still signs of distrust between the nations and the war is unlikely to end soon.

U.S. relationship with China

However, it is unclear on the kind of relationship the United States is looking to establish with China considering the U.S. sees China as a competitor to their global as a competitor to U.S domination.

As part of the agreement to work together, China agreed to change their trade practices as well as to be buying agricultural products from the United States. The U.S., on the other hand, decided to delay in the intensification of tariffs and sanctions on Chinese products worth $200 billion.

The U.S. is, therefore, unable to precisely classify China which leaves it open of the possible relationships that they can establish between armed conflict and cooperative coexistence.

Trade talks

Somehow, regardless of differences that might exist, president Trump has focused on correcting the U.S.-China trade balance. However, even if they achieve trade balance between the two countries, it will nonetheless be of minimal effect in the reduction of the disparity between the Chinese and U.S growth rates or forestalling China’s progress to surpass the U.S.

Although attempts to trade sanctions and tariffs are expected to cripple China, they nonetheless expected to have minimal effect. It is so because the Chinese economy is mostly export-led with America being its largest market. Regardless of the tariff burdens and restrictions, China is likely to survive because of a large domestic market as well as its leverage on emerging markets.

The U.S. will equally be affected by the trade wars since it relies heavily on low-cost products from China that support economically burdened Americans to meet ends. China equally represents the third biggest U.S. export market behind Canada and Mexico.

The U.S. can therefore not out-compete China, and they should, therefore, concentrate on leveraging new markets to compete with China.

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