Research on the Impact of America’s Trade Wars and Protectionism on the Global Economy and China’s Coping Strategy

Abstract

The objective of this paper is to examine the influence of the US trade war and protectionism on the global economy and on the Chinese economy and to put forward recommendations for addressing these issues. The rationale for selecting this topic is that shifts in the global trade landscape have posed significant challenges for the Chinese economy, necessitating a comprehensive examination of these issues for informed policymaking. The paper commences with an account of the US-China trade war that commenced in 2018. This conflict has had a detrimental effect on China’s exports in high-value-added sectors and has brought to light the Chinese economy’s excessive reliance on a single market. Subsequently, an analysis is presented of the gradual development of the domestic economy, the dearth of consumer spending power, and the obstacles faced by small and medium-sized enterprises (SMEs) in pursuing industrial modernisation. In the problem analysis, three principal issues were identified: overdependence on the US market, weak domestic consumption capacity, and the challenges faced by SMEs. Specific solution strategies are put forth to address these issues, including diversification of export markets, enhancement of residents’ income and promotion of consumption, and support for technological innovation and digital transformation of SMEs. The objective of this paper is to provide policymakers with effective recommendations for the stable and sustainable development of the Chinese economy. In addition to addressing current economic problems, these recommendations will contribute to the growth of related industries.