The development of China's economy has led to increasing political and
economic tensions between US-China. Increasing imports from China
caused to raise trade deficit in the trade balance of the US. Imposed and
mutual increasing tariffs made desperate relations between these
countries. Afterwards, these turned into the trade and currency war. The
impact of the trade and currency war between the United States and
China on the economies of other countries makes these issues one of the
most pressing issues. These two countries signed a trade agreement to
adjust relations, reduce the deficit. The most important problem is also
the Covid-19 outbreak because, after the trade deal, the pandemic both
made invalid deal and changed the economic balance in the world. The
weakened pandemic trade between the two countries thus reduced the
US trade deficit. The deficit increased again in the second half of 2020
with an increase in imports of medical supplies as well as medical masks
from China. China was able to overcome the pandemic easily and
recovered its own economy. The main purpose of this study is to study
the trade war between the United States and China and its main reasons,
how the Covid-19 pandemic affects the trade war. Other goals of the
research are to compare the economic performances of the United States
and China with the pre-pandemic period, to determine what changes
have taken place in the US and China's economies as a result of the
pandemic, to analyze these changes.
Citation:
Ismayilov, A., & Babayeva, F. (2021). US-China trade war: Impact of COVID-19 pandemic. ASERC Journal of Socio-Economic Studies, 4(1), 43-53. DOI:10.30546/2663-7251.2021.4.1.43