Whither the Trade War with China?

Abstract

In the ongoing trade dispute between the U.S. and China, the U.S. has demanded reducing or even eliminating tariff and non-tariff barriers and that China halt intellectual property theft and forced technology transfers. The current U.S. position has evolved from its earlier focus on attempting to reduce the trade deficit with China. Which country has the most to lose if the dispute escalates further? In this issue of PERCspectives on Policy, Dennis W. Jansen, Liqun Liu, and Andrew J. Rettenmaier discuss the history of U.S. – China trade relationship, the effects of the tariffs, and the bargaining and economic positions of each country as the trade dispute continues.