WTO INFLUENCE ON REGULATING GREAT ECONOMIES: A CASE STUDY OF THE US-CHINA TRADE WAR

Abstract

The research provides an analysis of the US-China trade war that occurred between 2018 and 2019, culminating in a deal reached in January 2020. This research outlines the detailed tariff impositions by the US and the reciprocal actions taken by China. For conducting this study, the methodology involved library research and analytical review methods to collect and analyze information within a broader conceptual framework. This research examines the influence of the WTO in the US-China trade dispute. Findings include the US decision to unilaterally increase tariffs on aluminum and steel in China due to perceived weaknesses in China's intellectual property rights enforcement and its significant influence over state-owned companies, resulting in unfair trade practices. Furthermore, this shift in trade created opportunities for other states to compensate for the loss of trade volume between the US and China. The WTO, in this case, provided the platform for both states to file complaints and recommended negotiations to settle the trade dispute. In January 2020, they reached an agreement to settle the trade war and return to the situation prior to 2018. This research addresses questions regarding how the WTO facilitated settlement of trade war, how the rest of the world benefited, and the reasons behind the US imposition of tariffs on China. One of the main findings of this research is that despite the trade disadvantages, it has a major advantage in enhancing intellectual property laws within China, thereby preserving the rights of intellectual property owners and mitigating opportunities for unfair trade practices globally.

Keywords: WTO, Trade War, US and China.