As the 2024 U.S. presidential election looms on the horizon, the discussion surrounding the economic competition between the United States and China continues to heat up, with candidates Biden and Trump increasingly focusing on the debate over U.S.-China trade policies.
Trump adopts protectionism, employing tariffs on Chinese imports to shrink the trade deficit and compel concessions, though his phase one deal with China underperformed. Conversely, Biden favors a multilateral strategy, emphasizing cooperation with allies and bolstering domestic industries. While also upholding tariffs, Biden invests heavily in clean energy, infrastructure, and advanced manufacturing, leading to a decreased trade deficit and improved trade relations.
With the rhetoric around the election heating up, Biden has proposed doubling sanctions on Chinese steel and aluminum products, while Trump has suggested imposing a blanket 60% tariff on all imports from China. Both candidates underscore the importance of addressing China's growing influence in trade and national security matters. However, the risk lies in their pursuit of electoral gains potentially exacerbating tensions unnecessarily, especially concerning sensitive issues like Taiwan, which has long been a point of contention between the U.S. and China.
As the election draws nearer, it becomes imperative for the candidates to avoid exploiting China policy for short-term political gains, as doing so could escalate tensions and push U.S.-China relations towards conflict. The outcome of the election will not only shape the economic trajectory of the United States but also determine the nature of its relationship with China, with far-reaching implications for the global economy.
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