Effect of Trade Wars Between USA and China (Research Paper Sample)

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A research Plan on the effects on the Trade war between China and USA.
Introduction
The end of World War I and World War II resulted in adverse economic effects and altered political stability, which brought about the loss of lives, destruction of property as well as a depression on the economy of several countries. After the second world war, Russia and America emerged as superpowers. The problem of the post-war world was fresh tensions between nations, which led to the cold war, while no military action was involved but economic and political sabotage. At the beginning of the 21st century, China had become a formidable power with a different ideology from that of the United States as China believed in communism. This difference in ideologies resulted in an unfavourable relationship between China and the United States of America.
Literature review
At the beginning of the 21st century, China had grown to become a powerful nation. The new power formation led to an imbalance. Towards the end of 2018 and up to 2020, a trade war broke up in the world. The United States of America, under Donald Trump’s administration, has worked towards damaging the trade between the two nations through the imposition of quota restriction on China’s imports. For instance, the US states that the goods imported to the USA are affecting the sales of their products as they are not being bought because of the high prices. Then, the USA imposed trade tariffs on products, while China also reacted by imposing trade tariffs on USA products depending on the severity imposed by the Americans. The US argues that China is spying on the American people by means of Huawei Technologies. An example of such an invasion is TikTok, which requests permission from the users to access their personal details. On the other hand, TikTok denies the claims and states that they uphold confidentiality and that a third party cannot access their client’s information.
The trade wars have had a negative impact on China as the US government has directed that any American company should cut trade ties with any China-affiliated company (Carvalho, 45). This has led to Google cutting short its Android Operating system supply to Huawei Technologies thus, making Huawei Technologies to come up with HarmonyOS, an operating system developed by Huawei. This affected Huawei’s future phones as they would lack the AndroidOS, which people prefer, hence, leading to a fall in Huawei future sales and a rise in the sales of android affiliated phones (Cartwright, 17).
In 2012, Chow D. (257) investigated the likelihood of a trade war happening between China and the United States of America. Moreover, according to Li C. et al. (1557), the relationship between China and the United States of America is going to be very detrimental to the economy of both parties, with a huge client base offered by both countries as a major problem. Nevertheless, the gap in the literature review is caused by the lack of information concerning the effect of the trade war on trading activity worldwide and the lack of speculative opinion of the conflict resolution.
During a trade war between two world leaders, the rest of the world will also feel the pinch of the war because China and the US supply a lot of products to the world. The revenue earned from trade is used in aids that indirectly helps the poor nations through the various subscriptions they have with the UN organs. The trade war will also affect trading tariffs, as they will tend to go up between the two nations and all the ally and axis nations. Apparently, with the pandemic, the trade wars will sink the economies into more depression. In the US, taxes imposed on Chinese products will go up and, as a result, the prices of the commodities will rise. This will discourage the consumption of Chinese products in the US reducing China’s sales there. The Chinese government is looking forward to resolve the matter, as the trade wars will affect them more than the US (Li, 1567). The Chinese depend on the US as it offers a huge customer base for Chinese products.
Research Questions
* What are the effects of the trade war between the US and China on trading activities across the world?
* What are the effects of the trade war on the various trading blocs that China and the US are affiliated with?
* How has the trade war affected the business relationship between China and the US?
* How do the two countries reach a consensus to end the trade war?
Research objectives
This research aims at establishing the extent to which the effects of the trade war will affect the world, by analyzing the significant influence that China and the US have on business activities worldwide. In addition, the objective of the project will be to come up with a solution that will end the trade wars and reinstate a good business relationship between China and the US.
Significance of the Project
The significance of this project is to access the business relationship and activities between China and the US. Many policies have to be abandoned so that the US and China reach a consensus and can trade freely with each other as a free-flowing business environment offers favorable conditions for trading. In addition, information drawn from the research project and analysis carried out on its feasibility towards the cure of the ongoing crisis will be provided for economic organizations to be reviewed. The project will also supply extra knowledge on financial implications arising from a strained business relationship and what the two countries will lose in the long-run if the problem is not resolved. The project can be used by business organizations that are planning to run operations between the two countries to determine the impact the relationship will have on their businesses. The project can be referenced by the two nations on the impact their relationship is having on the economies and try to come to a consensus, which is also the innovation of this paper.
Research Methods
The research project will require information on the sales operations between the US and China before the commencing of the trade war, information on international relations between the US and China before and after the trade war emerged, the political situation between the two governments, and the losses companies affected by the trade war have incurred. This data will be both quantitative and qualitative.
Money is the measure of progress in the business. It comes in the form of profits and revenue collected from sales. Therefore, to measure the extensive effect of the trade war crisis, the monetary aspect should be put into consideration. This comes in form of the existing secondary data accessed from the sales records in the period in which the trade war was at its peak. The quantitative data is presented in the form of numerical and continuous data. Continuous data, which takes any form and, in this case, is the monetary currency, is involved to measure the value of sales.
In addition, the percentage numbers meant to measure the extent to which the effect will be felt come in the form of continuous data as percentages take decimal forms and fractions. Statistics collected by earlier researchers of the trade war crisis between the US and China will be available in form of journals, articles, and companies’ financial records. Secondary data may come with some shortcomings arising from the biasness of information used as source materials. On the other hand, they will save time incurred in collecting the primary data, as well as the cost of collecting primary data, which might be expensive (Orsini, Lucinda S et al., 1131). However, to avoid the biases of secondary data, the use of more than two secondary sources will be essential for the collection of more than one view in regards to the trade war.