China and the United States Are Stuck in an Unhealthy Marriage



China and the United States have been having a massive trade dispute for years now. You might wonder why a legal company is writing about global trade? Because it affects many of the clients that our lawyers in China represent. We have seen many foreign companies leave China to open in other countries, like Vietnam.


China has also taken a tough stance on its relations with American companies. Facebook got banned from China in 2009 when the company failed to comply with Chinese government information requests. Google and China have also been unable to agree on their issues.


In 2018, China was the largest trading partner of the USA. The two countries traded over $650 billion with each other.


The United States has an economy of $20.49 trillion and is China’s largest trading partner. In 2018, the Chinese GDP in nominal terms stood at $13.37 trillion.


Both the United States and Chinese economies need each other. There’s no going back from globalization. China needs the USA to buy its low-cost products and manufactured goods. The USA needs low-cost imports from China to make cheaper products.


China and the United States Dispute


The New Cold War


It is likely that for the next few decades, the relationship between China and the United States will be like the cold war that existed between the Soviet Union for 45 years. Instead of real war, both countries will spend billions of dollars on influence, hacking, technological innovation, and banning each other’s companies and diplomates.


The first cold war with the Soviet Union entailed a space race, the building of aircraft carriers, spying, and the stockpiling of nuclear weapons. In 2020, the new cold war will involve each country’s ability to mine data, hack, and organize data. 


As became obvious in the 2013 Edward Snowden Global surveillance disclosures, countries can use their major companies to collect mass amounts of data, both domestically and internationally. As was the case with the Soviet Union and the US, both China and the USA will put pressure on each other until one of the countries collapses. The two countries cannot share the “gold medal.”


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Author: Alistair Vigier 韦理德


China and the United States Dispute | Get Help From A Chinese Law Firm


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