A Pivot from China to the US:

Re-engineering Trade and International Relations

INTRODUCTION

The U.S. trade with China is part of a complex economic relationship. In 1979 the U.S. and

China reestablished diplomatic relations and signed a bilateral trade agreement. China’s exports

to the U.S. over the decades have changed from low-value, labor-intensive products to more

capital intensive goods. It is now one of the U.S.’s major suppliers of advanced technology

products and global supply chains involving China and the U.S. are complex. Moreover, China is

the largest holder of U.S. Treasury securities.

The United States and China have several unresolved issues surrounding the bilateral trade

between the two countries. The trade deficit between China and the U.S. has swelled immensely

as the volume of imports from China grew much more rapidly than U.S. exports to China. This

large trade deficit has been an issue of concern for economists and policymakers alike. Some

claim it as an indicator of Chinese unfair trade practices, while others credit the imbalance to the

strength of the Chinese economy and production systems heavily influenced by state

interventions. The Trump administration has initiated several tariff measures with a goal of

reducing the trade imbalance.

China has become a major global player in trade, both as a supplier and as a market. Its share of

global goods trade has increased significantly over the years. China's foreign economic policy is

based on the idea that its trade, investment, and lending produce economic development
opportunities for both China and its developing country partners. As China's markets continue to

open up, its relationships with its neighbors and the rest of the world are becoming increasingly

important.

The United States has been re-engineering its trade and international relations. The Biden

administration has prioritized boosting the US economy by strengthening manufacturing,

innovation, and competitiveness, as well as advancing labor and environmental goals. Trade

policy is a significant part of US foreign policy and is of paramount importance for reasserting

US leadership. The US has also been working with allies and partners to address trade frictions

and counter and constrain actions. Recently, the US and Europe announced a new trade and

technology partnership aimed at countering China, but disputes over issues like metal tariffs

remain. The Office of Bilateral Trade Affairs plays a key role in developing, negotiating,

implementing, and enforcing US trade policy in every region of the world.

The United States and China have one of the world’s most important and complex bilateral

relationships. Since 1949, the countries have experienced periods of both tension and

cooperation over issues including trade, climate change, and Taiwan.

By the 1990s China’s economy was racing ahead at full steam. As the twenty-first century

commenced China continued to rise. For much of this period the United States has been a

beneficiary, and supporter, of China’s transformation from an isolated, agricultural country to an

industrial one. Diplomatic relations between China and the United States have been highly
strained with a trade and ideological war, divergent views on how to manage the pandemic and

remote geopolitical clashes.

Relations between the United States and China are more crucial than ever for the world

economy, including for French companies. According to the IMF, the consequences of an

escalating trade war would be colossal. "Greater uncertainty about trade policies and fears of

escalation and retaliation would lead to reduced business investment, disruption of supply

chains, and slower productivity growth." A decline in profitability could "undermine the

confidence of financial markets and further dampen growth".

NARRATIVE

In studying the given topic, “Pivot from China to the US: Re-engineering Trade and International

Relations,” the first step we took was to individually search and study the topic before giving our

opinions about it. Below are the opinions given by each member:

“The idea of a “Pivot from China to the US: Re-engineering Trade and International Relations”

means changing from doing a lot of business with China to doing a lot of business with the

United States. This would have a big effect on how countries trade and work together because

China and the US are very important countries in the world. This change could happen because

of worries that China is stealing other countries’ ideas or not treating people fairly. Also, China

and the US have different ideas about how things should be done, which can cause arguments

over things like land, internet safety, and trade. Changing the way countries do business is not

easy and could have bad effects on the economy or the things people can buy. It could also make
it harder to solve problems in other parts of the world. The Philippines Is one country that would

be affected by this change because it does a lot of business with China. If it changed to doing

more business with the US instead, it could be good for the economy, but it could also make it

harder to be friends with both countries. If countries want to make this change, they need to be

careful and think about what could happen so that it doesn’t cause big problems for people or the

economy.” – JUSTIN

“In my own point of view the connection between the two allies has been greatly remarkable in

terms of their economic growth. US and China are in a state wherein the two share goods and

services that are to boost their economic activity. The two were the largest producers since 1980

although China has a conflict with Taiwan it seems that it does affect its relationship with the

US. The goal of the two is to preserve economic growth and the expansion of their territory. But

the conflict between Taiwan and China brought it to deliberately to the US as per the US did not

recognize the PRC but continues to recognize the ROC which is the Republic of China and later

on China become communist. As for the present time when late President Trump loss this was

one of the reason also why China and US is in chaos.”– MAUREEN

“China was the biggest trading partner of the United States. The US and China has trade

relationship and it influence many of their other trading partners. The US trade with China has

grown enormously in recent decades and is crucial for both countries. And as of today US

imports more from China than from any other countries, and china is one of the largest export

for US goods and services, this will beneficial for the both of them. The process of re-engineering

in China and US makes us understand the influence of culture factors in terms of their
international relations. The United States should always speak up for its interests and values in

dealing with China in commerce, international security, and human rights. But we should not

fear a strong and prosperous China the surest way to make China an enemy is to treat it as one.

Despite serious and persistent differences, China and the United States have been able to

construct a relationship that has benefited both countries and increased the stability of Asia and

the world. Expanded ties and cooperation allow a flow of ideas that can break down mistrust and

misunderstanding of China in the United States, while encouraging growth and, potentially,

political change within China.” – JAIRA

“CHINA and US is one of the countries in the world that are rich when it comes in trading and

industries. They are the partnership in growing economy since it is their goal as an individual

country. They are the biggest producers in technology, agriculture, metal and more. Both in

export and import. But in the year 2018, when Donald Trump became the president, he accused

that the China steal some of the “americal intelectual property” example of this was about their

technology plan. China become a spy and little did they know they steal/copy the american

property and it became as them. That’s the start of their Trade war. Donald Trump put higher

tariff/Vat to all the chinesse product which affect our foreign/global relations and put lower on

them. Perhaps, because of this, it affects the agriculturist and other businesses inside and outside

the Us-China country since there is no balance when it comes in producing the export and

import of the products.”– HAILEM

“In 2022 Forbes reported that China has the second highest number of US dollar billionaires.

Chinese entrepreneurs rode the technology boon and became fabulously rich.US and China are
dependent equally on each other for continued economic success. They are economically

interdependent. The US is China’s largest export market and China is the US largest import

market.Currently the US and China have mutual political,economic and security interest but the

two countries remain in dispute over territorial issues in the South China Sea.During the ASEAN

Regional Forum in Hanoi in 2011, US State Secretary Hillary Clinton announced that the South

Cina Sea was one of America’s core interest.Then President Obama saw China’s rising power

and he announced a pivot to the region in terms of Americas’ attention diplomatically and

militarily. The pivot to East Asia didn’t get far. China has prevented the Philippines from

developing potential natural gas deposits within our exclusive economic zone. Duterte allowed

China to make him believe that he can barter our sovereignty with Chinese dole outs. In the end,

Duterte didn’t even get China’s promised economic assistance. China took Duterte for a fool.

President Ferdinand Marcos Jr. Has said he cannot see the Philippines in the future without

having US as a partner. This new pivot in our relations with US will assure us that we have the

US backing when times of conflict arise.” – RICKY

“With the re-engineering of trade and international relations between China and the US, China

has become the world’s largest trading partner, with 124 countries, well exceeding the

comparable figure of 76 for the United States. But as trade remade China, in the process it also

remade world trade so that today the United States imports more from China than from any other

country, and China is one of the largest export markets for U.S. goods and services, which makes

them more affordable for consumers, but it also comes with costs. Though U.S. consumers

benefited from the flood of cheaper goods from China, millions of Americans lost their jobs due

to import competition.”– LAIZA

These two countries have been stable for how many decades, even though there have been some

conflicts in the world. But there was a time when China and the United States began to have a

war and fought with each other, which affected their international relations until now in the Joe

Biden administration. I believe that the pivot from China to the US will help them restore or

re-engineer their trade and resolve some of their conflicts. And it helps to meet the demand and

needs in their countries despite their war.” – ZAIRA

“In the 20th century, the United States became dominant in terms of trade and global influence.

It is proven that in the time of the Cold War, the United States had more influence that most

nations are conformed, that resulted in the gradual call of the Soviet Union in the 1980s. But

another challenge steps up and rising up on its occasion in its recent years, that is the People’s

Republic of China. Trade has become an increasingly important part of China’s overall economy,

and it has been a significant tool used for economic modernization. Since the leadership of Deng

Xiaoping in 1976, the economy and global influence of China skyrocketed. While the USA is still

leading in global trade, the influence of China is gradually attracting, especially Asian

countries, who has concentrated more than 60% of population.” – ROLLY

“Many of the countries with strong export growth were operating along downward sloping

supply curves and selling products that substituted for those previously supplied by the US or

China. Both are dependent equally on each other for continued economic success. However, the

China-US trade agreement has provoked contrasting sentiments because the agreement averts a
damaging trade war. The agreement to grant the US selective, preferential access to the Chinese

market breaks multilateral rules that prohibit discrimination between trading partners. If China

accommodates US demands by granting it privileged access to a still-protected Chinese market,

then the US will benefit but other countries and probably China will lose. If instead, China

accommodates US demands by liberalising access to its market for all trading partners, then all

countries, including the US and China, would benefit. Therefore by offering China an added

incentive to open its markets to all, become an instrument for multilateral liberalization.” –

ANA MARIE

“A pivot from China to the US is the product of globalization. Their economies are very

important, not just to the two of them but to the global economy. Before the trade war happened

between these two countries, they were partners and both contributed to making their economies

better, which was their individual goal between the two of them. However, the issue arose about

stealing some property, wherein Donald Trump accused China. Because of this, a stable

partnership ended and a conflict started. Because of this issue, Chinese products were given a

higher tariff by the US, which affected other countries like the Philippines since China is one of

our biggest producers. As of now, we can still see and feel the conflict between the two,

especially when we strengthen our partnership with the US and allow them to build military

bases or the Enhanced Defense Cooperation Agreement in our country. This alarms China,

which takes the partnership or EDCA as disrespect for them. If this conflict continues between

the two largest economies, the tiny economies will suffer, so the partnership between China and

the US must be rebuilt to attain the global economic development that every country looks for.

Every country is involved in the issue because all are involved in the consequences that might
happen, whether negative or positive. It is impossible to achieve harmonious international

relations and global economic development if bigger economies are still in chaos, so I think it is

time for re-engineering trade and international relations by forgetting the past, focusing on the

present, and working for the future economy.” – SOFIA

“We all know that the two countries mentioned have distinct economic functions when it comes to

re-engineering trade and international relations. This topic, I guess, focuses on how China and

the United States might shift their strategy to achieve much greater benefits. This is also about

how these countries might increase their economic contentment. When it comes to international

relations, I believe that shifting strategies might help countries to better understand and this

enables countries to collaborate toward common economic goals and develop their economies.

This can also lead to financial interdependence among nations, which is an important

component of international politics.” – MARICRIS

Studying the “Pivot from China to the US: Re-engineering Trade and International Relations”

challenged our group. We faced struggles, especially in understanding the topic and finding

sources. Our group is unfamiliar with the topic, so we searched and read various articles and

watched videos and documentaries until we understood the given topic. For us to better

understand the topic, we studied the two countries involved, which are the two biggest or the two

leading economies as of now. In searching for these two countries, we gained a huge amount of

knowledge, but because we used various sources the information and opinions pointed to

different ideas. The reader might notice the diversity of ideas, which will serve as a guide to
finding out what the topic is all about and determining how each member contributes to the

fulfillment of this paper.

FINDINGS

The international community has recently witnessed a trend of countries shifting their economic

and diplomatic focus from China to the United States. This phenomenon, known as the "Pivot

from China to the US," has significant implications for global trade and international relations.

The reasons behind this shift are varied, including the changing geopolitical landscape in the

Asia-Pacific region, growing trade tensions between the US and China, and a recognition of the

importance of human rights and democratic values.

China's rapid economic growth and military expansion have raised concerns among its neighbors

and the United States, leading to an increased demand for a stronger US presence in the region.

This has resulted in many countries seeking closer ties with the US, both diplomatically and

economically, to counterbalance China's growing influence. Furthermore, the growing trade

tensions between the US and China have resulted in a significant disruption of global trade,

leading many countries to become wary of the uncertainty and instability of the global trading

system. As a result, they are seeking to diversify their trade relationships, which has led to a

growing interest in trade agreements with the US and other countries that are not directly

involved in the US-China trade dispute.

The Pivot from China to the US also reflects a growing recognition among countries of the

importance of human rights and democratic values. China's growing economic and political clout
has allowed it to exert influence on the world stage, often at the expense of human rights and

democratic principles. This has led many countries to reevaluate their relationship with China

and seek closer ties with the US, which has historically championed democracy and human

rights.

The implications of the Pivot from China to the US are significant for global trade and

international relations. One potential outcome is the fragmentation of the global trading system,

as countries seek to diversify their trade relationships. The world may see the emergence of

regional trading blocs, each with its own set of rules and regulations, leading to a less efficient

and more complex global trading system, which would be detrimental to global economic growth

and development.

Another implication is the potential for increased competition and conflict between the US and

China. As countries align themselves with one or the other, there is a risk of a new Cold

War-style rivalry emerging, leading to an arms race, increased military spending, and a

deterioration of global security.

Despite these risks, there are also potential benefits to the Pivot from China to the US. One of the

most significant benefits is the potential for increased economic growth and development. By

diversifying their trade relationships, countries can tap into new markets and sources of

investment, leading to increased economic activity and job creation. In addition, closer ties with

the US can provide countries with access to advanced technologies and expertise, which can help

to drive innovation and competitiveness.

values and human rights. By aligning themselves with the US, countries can signal their

commitment to these values and work together to promote them on the world stage. This could

lead to a more stable and peaceful global order, with less conflict and tension between countries.

The United States and China have been at odds with each other, and while there are varying

perspectives on how to pivot from China to the US and re-engineer trade and international

relations, there is no one-size-fits-all solution. Some suggest replacing a portion of China's

imports with US goods, while others believe that all Asian countries want to have good relations

with both the US and China. The COVID-19 pandemic has demonstrated the dangers of relying

too heavily on any one country for vital commodities, and some policymakers worry that China

could use its manufacturing prowess to exert coercive leverage.

According to an article in China Briefing by Arendse Huld, the economic ties between China and

the US are so strong that any disruption in trade or investment could have far-reaching

consequences for both countries and the global economy. In 2020, despite the COVID-19

pandemic and ongoing trade tensions, the total trade volume between China and the US reached

$586.7 billion. This represents a 9.8% increase from the previous year and is the highest trade

volume between the two countries since 2018.

The article notes that China is the US's largest trading partner, with exports to China accounting

for around 7% of total US exports. Meanwhile, the US is China's third-largest trading partner,
with imports from the US accounting for around 8% of total Chinese imports. In addition to

trade, the two countries are also deeply intertwined in terms of investment. US companies have

invested over $110 billion in China, while Chinese companies have invested over $120 billion in

the US.

Despite these strong economic ties, the relationship between the two countries has been strained

in recent years. The Trump administration's trade war with China, which began in 2018, saw

both countries impose tariffs on each other's goods, leading to a decline in trade and investment.

The Biden administration has also taken a tough stance on China, particularly in the areas of

human rights, intellectual property, and technology.

However, the article argues that the economic relationship between China and the US is too

important to be completely disrupted by political tensions. Both countries are heavily reliant on

each other's markets and supply chains, and any attempt to sever these ties completely could lead

to serious economic consequences. For example, if the US were to ban all imports from China, it

would have a significant impact on the US economy, as many US companies rely on

Chinese-made goods and components.

The article also notes that the COVID-19 pandemic has highlighted the importance of global

supply chains and cooperation between countries. As countries around the world struggled to

obtain medical supplies and equipment, China became a major supplier of these goods, with

exports of medical equipment and supplies to the US increasing by over 1,000% in the first half
of 2020. This highlights the interdependence between the two countries, as well as the

importance of maintaining open trade and investment flows.

Despite the challenges and tensions in the US-China relationship, the article concludes that the

two countries will likely continue to rely on each other's economies in the years to come. China's

economy is expected to continue growing, driven by domestic consumption and the

government's efforts to promote high-tech industries. Meanwhile, the US will continue to rely on

China's manufacturing capabilities and market access, particularly as it seeks to rebuild its

infrastructure and address issues such as climate change.

In conclusion, the economic relationship between China and the US is highly complex and

multifaceted. Despite ongoing political tensions and trade disputes, the two countries remain

heavily reliant on each other's economies, as evidenced by the robust bilateral trade figures.

While there are certainly challenges and risks associated with this relationship, it is clear that any

attempt to sever ties completely would have serious economic consequences for both countries

and the global economy. Therefore, it is in the best interests of both countries to find ways to

work together and manage their economic relationship in a constructive and cooperative manner.

CONCLUSIONS

The opinions presented in the conclusion provide different perspectives on the relationship

between China and the United States, highlighting both the benefits and concerns of their

economic and political ties. Despite the tensions and disagreements between the two countries,
the economic relationship remains significant and intertwined, with both countries relying on

each other for trade and investment.

The findings suggest that the "Pivot from China to the US" phenomenon is becoming more

prevalent, as many countries shift their economic and diplomatic focus from China to the United

States due to China's rapid economic growth, military expansion, and concerns about human

rights and democratic values. This shift has significant implications for global trade and

international relations, potentially leading to increased competition and conflict between the US

and China.

However, our opinions and the findings emphasize the importance of carefully considering the

impact of any changes in trade and international relations to avoid negative consequences for the

economy and people. Severing economic ties completely between China and the US could have

serious economic consequences for both countries and the global economy.

Overall, the relationship between China and the US is complex and multifaceted, and requires

careful navigation to balance economic interests, political tensions, and human rights concerns.

As the world's two largest economies, their relationship will continue to play a significant role in

global affairs, and it is crucial to find a way to maintain a positive and stable relationship that

benefits both countries and the world as a whole.

REFERENCES

https://www.sciencedirect.com/science/article/pii/S2667111521000165
https://www.uschina.org/reports/understanding-us-china-trade-relationship

https://academic.oup.com/book/36648/chapter-abstract/321650332?redirectedFrom=fulltex

https://www.cfr.org/backgrounder/contentious-us-china-trade-relationship

SUBMITTED BY:

Gepiga, Maricris A.

Gabaya, Ana Marie B.

Mortega, Justin M.

Hipos, Sofia Marie

Lao, Zaira M.

Villacacan, Maureen

Guna, Jaira

Frivaldo, Hailemrheab

Valentino, Rolly

Goyal, Ricky

Lojica, Laiza

BSEd SOCIAL STUDIES

SUBMITTED TO:

Mr. Rodosendo Razo Jr.