| Summary/Abstract |
THE U.S.-INITIATED disruption of the status quo in trade with China has laid the foundation for fundamental changes in relations between Washington and Beijing, and established a confrontational track for their development in the coming years and possibly even decades. A significant increase in trade barriers between the two largest economies in the world has left its mark on global trade and economic ties. At the height of the tariff war in late 2019, the U.S. levied duties on $375 billion worth of Chinese imports, and China imposed duties on $110 billion in supplies from the U.S. According to the IMF, this led to a 0.8% decline in global GDP by 2020.1 In January 2020, Beijing and Washington signed the "first phase" of a trade agreement that was supposed to iron out the disagreements between the countries. But the truce has so far raised more questions than answers.
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