Us-China Trade:: Perspectives and Impact on the Global Economy

170 Pages·2021·9.128 MB·English

by  John C Amon

TRADE ISSUES, POLICIES AND LAWS

US-C T
HINA RADE

P I
ERSPECTIVES AND MPACT
G E
ON THE LOBAL CONOMY

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T I , P L
RADE SSUES OLICIES AND AWS

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TRADE ISSUES, POLICIES AND LAWS

US-C T
HINA RADE

P I
ERSPECTIVES AND MPACT
G E
ON THE LOBAL CONOMY

JOHN C. AMON
EDITOR
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ISBN: (cid:28)(cid:26)(cid:27)(cid:16)(cid:20)(cid:16)(cid:24)(cid:22)(cid:25)(cid:20)(cid:28)(cid:16)(cid:28)(cid:27)(cid:24)(cid:16)(cid:26)(cid:11)(cid:72)(cid:37)(cid:82)(cid:82)(cid:78)(cid:12)

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CONTENTS

Preface vii
Chapter 1 United States of America-Africa Trade
and China-Africa Trade: A Comparison
and Implications for Africa’s Industrial
Development through Trade 1
Tsitsi Effie Mutambara
and Malwande Ndzabukelwako
Chapter 2 The History of Sino-US Trade 103
Jiandong Shi
Chapter 3 The China-US Trade War
and its Impacts on Latin America 127
Adriana Peluffo and Sebastian Villano
Index 151

PREFACE

The United States of America and the Peoples’ Republic of China are
the world’s leading economies. As such, if one wishes to understand the
global economy, he or she must consider the economic relationship between
these two countries. Chapter one examines the complex trade
interrelationship among the US, China, and Africa, and the impact this
system has on Africa’s development. Chapter two analyzes the overall
situation of the development of the Sino-US trade by examining the history
of trade between China and the US starting from the late 18th century.
Chapter three provides an overview of the trade war between China and the
United States and illustrates the impact of this conflict on Latin America.
Chapter 1 - Both the USA and China have preferential trade facilitating
arrangements that promote certain products from Africa to enter their
respective markets duty free. Several indexes were used to examine how
these two countries trade with Africa and the implications thereof for
Africa’s industrial development through trade. The intra-industry trade
index shows the extent to which there is two-way trade in high value-added
manufactured goods between trading partners as this type of trade has
implications for technology transfer and modernising industrial bases.
Results show that, it is in the USA-Africa trade where there are more and
sustainable intra-industry trade opportunities and potential, and thus more
relevant in helping African countries to develop their industries further
viii John C. Amon
through technology transfers, an interchange of knowledge and joint
research. The revealed trade preference index examines the extent to which
trading partners regard each other as significant trading partners. The results
show that China and Africa regard each other as significant trading partners
as their trade is significantly oriented towards each other, and the extent of
this orientation has been rising over the years. Trade intensity and
orientation between the USA and Africa has been on a constant decline, with
such a decline accelerating even faster after 2012. Therefore, it is China
which has been harnessing and utilising more fully trade opportunities that
arise in Africa. The revealed trade barriers index gives insights into the ease
with which products from various regions can access a market. The results
show that most raw materials, resource-intensive goods and low-value added
goods imported by the USA and China experience preferential treatment
when entering both markets. High value-added manufactured goods are
mainly discriminated against upon entry into either the USA or China.
However, the level of discrimination is experienced a lot more when
entering the Chinese market than the USA market. Therefore, it is the USA,
which provides Africa with more room and easier market access for high
MVA products, thus giving Africa an incentive to continue to modernise and
improve the technological complexity of its manufactured products. This is
important for Africa so that it does not continue to remain largely as an
import source for raw materials and low value-added manufactured goods.
The trade complementarity index shows the extent to which trading partners’
export supplies match each other’s import demand as well as to highlight
product areas in which trade can be developed further by trading partners.
The results show that both the USA and China’s export supplies match
Africa’s import demand very well. This shows that, across all product
categories, there are potentials for Africa to develop further its trade
relations with both countries. However, the results on this show that it is
with China that Africa has been developing further its trade in some of the
product categories, and not the USA. The product categories in which Africa
has been doing this with China are Chemicals, Machinery and transport
equipment where it can obtain medium-skill and high-skill technology-
intensive inputs and final goods.