chap 1

Before 2018, how would you best describe U.S.–China trade relations?

• Minimal trade and weak economic ties

• Heavy trade interdependence with a large U.S. trade deficit

• Balanced trade with equal exports and imports

• Mainly focused on agricultural goods

What was one key measure the U.S. took against China?

• Limiting student visas for Chinese students

•  Imposing tariffs on Chinese goods worth over $360 billion

•  Banning imports of Chinese textiles only

• Cutting diplomatic relations

 What were the main causes of the U.S.–China trade war?

• Agricultural subsidies

• Trade deficits, IP theft, and technology transfer issues
  
  

• Currency manipulation and immigration policies
  

• Labor cost differences

How did China retaliate against U.S. measures?

• Imposing reciprocal tariffs on U.S. goods

• Devaluing its currency by 50%

• With drawing from the WTO

• Reducing its exports voluntarily

During the trade war, what did China do at the WTO?

• Filed complaints against U.S. tariffs as violations of WTO rules

• Left the organization

•  Increased tariffs on all WTO members

•  Imposed WTO sanctions on the U.S.

Which countries benefited the most from supply chain shifts during the trade war?

• Vietnam, Mexico, and India

• 
  Russia, Brazil, and Saudi Arabia

• Canada, Japan, and South Korea

• The U.K. and France

What political consequence did the trade war cause internationally?

• Strengthened U.S.–EU alliance

• Accelerated the U.S.–China technological rivalry and global polarization

• Ended the WTO’s function

• Created new trade blocs between Africa and South America

What happens when Chinese goods enter Vietnam’s market?

• Prices increase sharply

• Competition for local firms intensifie

• Vietnamese exports are banned

•  Vietnam’s domestic demand falls

What was one major element of the Phase 1 deal in 2020?

• China agreed to increase purchases of U.S. goods

• U.S. lifted all tariffs immediately

• Both countries abandoned the WTO

• U.S. allowed Huawei unrestricted market access

 After the Phase 1 deal, what was the situation under President Biden?

• All tariffs were removed

• The U.S. maintained tariffs and focused on tech competition

• The U.S. rejoined TPP and cut off trade with China

• The trade deficit disappeared