Trade War Between the US-China: Impact Towards Asean
Abstract
The trade war between the United States (US) and China has significantly impacted the Association of Southeast Asian Nations (ASEAN), posing a direct threat to its diplomatic and economic structures. The aim of this study is to comprehensively understand the effects of the US-China trade war on ASEAN. Therefore, the research explores various impacts of the trade war, including political consequences, economic interests, economic drawbacks, and the opportunity for ASEAN to become a new hub for economic development. This study has two objectives: identify the factors that contribute to the Trade War between US and China and to study the impacts of Trade War between US and China towards the ASEAN. By employing a qualitative method, secondary data was collected from scientific materials such as books, papers, journals, and online sources. The study utilizes the concept of national interests to explain the phenomenon under investigation. The research highlights the significant factor of the trade war between US and China on the economy, politics, security, and presidential leadership. The effects of the trade war between US and China, categorizing them into political and economic impacts, and explores the potential for ASEAN to become a new hub for economic development. Consequently, ASEAN has begun taking actions to mitigate the drawbacks of the trade war while maximizing the benefits it brings. These actions include promoting regional economic integration, developing local businesses, strengthening internal cooperation within ASEAN, and diplomatic efforts externally.
References
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Hiep, N. Q. (2019). Vietnam-China Trade Relations and the Effects of the US-China Trade War. Business and Economic Research, 9(4), 1. https://doi.org/10.5296/ber.v9i4.15201
Huang, K. G.-L., Geng, X., & Wang, H. (2017). Institutional Regime Shift in Intellectual Property Rights and Innovation Strategies of Firms in China. Organization Science, 28(2), 355–377. https://doi.org/10.1287/orsc.2017.1117
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Li, M., Balistreri, E., & Zhang, W. (2020). The U.S.- China Trade War: Tariff Data and General Equilibrium Analysis. https://www2.econ.iastate.edu/faculty/balistreri/ Papers/crts_trade_war.pdf
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Lioudis, N. (2022, April 8). How does the balance of trade impact currency exchange rates? Investopedia. https://www.investopedia.com/ask/answers/041515/how-does-balance-tradeimpact-currency-exchange-rates.asp
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Miller, C. (2022). Chip War. Simon and Schuster.
Ng, L. (2021, August 13). A Comprehensive Introduction to Commodity Trade Finance - ICC Guide. ICC Academy. https://icc.academy/commodity-tradefinance-guide/
Petri, P. A., & Plummer, M. G. (2013). ASEAN Centrality and the ASEAN-US Economic Relationship. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2319426
Prud’homme, D., von Zedtwitz, M., Thraen, J. J., & Bader, M. (2018). “Forced technology transfer” policies: Workings in China and strategic implications. Technological Forecasting and Social Change, 134(7), 150–168. https://doi.org/10.1016/j.techfore.2018.05.022
Setiawan, B. (2020). Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach. Sriwijaya International Journal of Dynamic Economics and Business, 4(3), 161. https://doi.org/10.29259/sijdeb.v4i3.16174
Soeparna, I. (2021). The Role of The Asean Summit In The Asean Economic Dispute Settlement. Journal of ASEAN Studies, 9(2). https://doi.org/10.21512/jas.v9i2.7771
Stubbs, R. (2019). ASEAN sceptics versus ASEAN proponents: evaluating regional institutions. The Pacific Review, 32(6), 923–950. https://doi.org/10.1080/09512748.2019.1611627
Tai-leung Chong, T., & Xiaoyang, L. (2019). Understanding the China–US Trade War: Causes, Economic Impact, and the Worst-Case Scenario, A Special Issue on Sino-US Trade War, 7(2), 113–121. https://doi.org/10.1080/20954816.2019.1595331
Tao, W. (2022). China and America: Destined for Conflict? Springer Nature.
The State Council Information Office of the People's Republic of China. (2018, July 19). China and the World Trade Organization. Sl.china-Embassy.gov.cn. http://sl.china-embassy.gov.cn/eng/zt_1/WTO/
Thiel, A. (2019). Cheat Me in the Price, but Not in the Goods: Negotiating Imaginaries of Authenticity in Accra’s China Trade. Chinese and African Entrepreneurs, 25(5). https://doi.org/10.1163/9789004387423_013
Wang, X. (2018, September 22). SCMP. South China Morning Post. https://www.scmp.com/week-asia/opinion/article/2164983/why-trumps-tradewar-blessing-disguise-chinese-leaders
Wang, X., Wang, X., Zhong, Z., & Yao, J. (2020). The impact of US–China trade war on Chinese firms: Evidence from stock market reactions. Applied Economics Letters, 28(7), 1–5. https://doi.org/10.1080/13504851.2020.1764477
Weixing, H. (2018). Trump’s China Policy and Its Implications for the “Cold Peace” across the Taiwan Strait. The China Review, 18(3), 61–88.
Zeng, K., Wells, R., Wilkins, A., & Gu, J. (2022). Bilateral Tensions, the Trade War, and US–China Trade Relations. Business and Politics, 24(4), 1–31. https://doi.org/10.1017/bap.2022.8
Zhang, X. xi. (2019). Informational Discontinuity in Soybean Futures Price from the 2018-2019 Sino-America Trade War. Cornell University Graduate School. https://doi.org/10.7298/njav-qf21
Zhao, X.-X., Wen, J., Wanaguru, S., & Chang, C.-P. (2020). The Impact of Trade Conflict on Monetary Policy in Target Economies. The Singapore Economic Review, 1–24. https://doi.org/10.1142/s0217590821410022
Zhu, Z., Yang, Y., & Feng, S. (2018). Trade War between China and US. Proceedings of the 2018 International Conference on Advances in Social Sciences and Sustainable Development (ASSSD 2018), 206. https://doi.org/10.2991/asssd-18.2018.88
Ahmad, T., & Zhang, D. (2020). A critical review of comparative global historical energy consumption and future demand: The story told so far. Energy Reports, 6, 1973–1991. https://doi.org/10.1016/j.egyr.2020.07.020
Boylan, B. M., McBeath, J., & Wang, B. (2020). US–China Relations: Nationalism, the Trade War, and COVID-19. Fudan Journal of the Humanities and Social Sciences, 14(1). https://doi.org/10.1007/s40647-020-00302-6
Cerutti, E., Gopinath, G., & Mohommad, A. (2019). The Impact of US-China Trade Tensions. IMF. https://www.imf.org/en/Blogs/Articles/2019/05/23/blog-theimpact-of-us-china-trade-tensions
Chad, P. B. (2018, June 18). Statement from the President Regarding Trade with China – The White House. Trumpwhitehouse.archives.gov. https://trumpwhitehouse.archives.gov/ briefings-statements/statementpresident-regarding-trade-china-2/
Chen, J. (2022, February 28). What is a Trade War? Investopedia. https://www.investopedia.com/terms/t/trade-war.asp
Davis, B., & Wei, L. (2020). Superpower showdown: how the battle between Trump and Xi threatens a new cold war. Harper Business, An Imprint Of Harpercollinspublishers.
Egberink, F., & van der Putten, F.-P. (2010). ASEAN and Strategic Rivalry among the Great Powers in Asia. Journal of Current Southeast Asian Affairs, 29(3), 131–141. https://doi.org/10.1177/186810341002900307
Egger, P. H., & Zhu, J. (2020). The U.S.-Chinese Trade War: An Event Study of Stock-Market Responses. Economic Policy, 35(103), 519–559. https://doi.org/10.1093/epolic/eiaa016
Fama, E. F., & Jensen, M. C. (2021). Separation of Ownership and Control. The Journal of Law and Economics, 26(2), 301–325.
Feenstra, R. C., & Sasahara, A. (2018). The “China shock,” exports and U.S. employment: A global input–output analysis. Review of International Economics, 26(5), 1053–1083. https://doi.org/10.1111/roie.12370
Finley, L. L., & Johnson, M. (2018). Trumpism: the politics of gender in a postpropitious America. Cambridge Scholars Publishing.
Graham, J. (2023, April 15). U.S.-China technology cold war heats up as Beijing returns fire. Investor’s Business Daily. https://www.investors.com/news/u-schina-trade-war-over-technology-heats-up-what-it-means-for-apple-microntesla/
Ha, L., & Lars Willnat. (2022). The U.S.–China Trade War. MSU Press.
Hayes, A. (2022, April 12). Pros and Cons of a Trade Deficit. Investopedia. https://www.investopedia.com/articles/investing/051515/pros-cons-tradedeficit.asp
Hiep, N. Q. (2019). Vietnam-China Trade Relations and the Effects of the US-China Trade War. Business and Economic Research, 9(4), 1. https://doi.org/10.5296/ber.v9i4.15201
Huang, K. G.-L., Geng, X., & Wang, H. (2017). Institutional Regime Shift in Intellectual Property Rights and Innovation Strategies of Firms in China. Organization Science, 28(2), 355–377. https://doi.org/10.1287/orsc.2017.1117
Hui, H. C. (2021). The long-run effects of geopolitical risk on foreign exchange markets: evidence from some ASEAN countries. International Journal of Emerging Markets, ahead-of-print (ahead-of-print). https://doi.org/10.1108/ijoem-08-2020-1001
Kitchin, R., & Thrift, N. (2009). International encyclopedia of human geography. Vol. 4 [F - G]. Amsterdam Elsevier.
Kraft, H. J. S. (2017). Great Power Dynamics and the Waning of ASEAN Centrality in Regional Security. Asian Politics & Policy, 9(4), 597–612. https://doi.org/10.1111/aspp.12350
Krugman, P. (2022, December 13). Opinion | Why America Is Getting Tough on Trade. The New York Times. https://www.nytimes.com/2022/12/12/opinion/america-trade-biden.html
Lardy, N. R. (2001, April 25). U.S.-China Economic Relations: Implications for U.S. Policy. Brookings. https://www.brookings.edu/articles/u-s-china-economicrelations-implications-for-u-s-policy/
Lau, L. (2019). ˜Theœ China-U.S. trade war and future economic relations. Hong Kong Chinese University Press.
Li, M., Balistreri, E., & Zhang, W. (2020). The U.S.- China Trade War: Tariff Data and General Equilibrium Analysis. https://www2.econ.iastate.edu/faculty/balistreri/ Papers/crts_trade_war.pdf
Lighthizer, R. (2021, October 5). Robert Lighthizer on the need for tariffs to reduce America’s trade deficit. The Economist. https://www.economist.com/byinvitation/2021/10/05/ robert-lighthizer-on-the-need-for-tariffs-to-reduceamericas-trade-deficit
Lioudis, N. (2022, April 8). How does the balance of trade impact currency exchange rates? Investopedia. https://www.investopedia.com/ask/answers/041515/how-does-balance-tradeimpact-currency-exchange-rates.asp
Mehmood, Z. H., & Khan, R. (2021). Revisiting The Us-China Trade War: A Strategic Assessment. AUSTRAL: Brazilian Journal of Strategy & International Relations, 10(19). https://doi.org/10.22456/2238-6912.113193
Miller, C. (2022). Chip War. Simon and Schuster.
Ng, L. (2021, August 13). A Comprehensive Introduction to Commodity Trade Finance - ICC Guide. ICC Academy. https://icc.academy/commodity-tradefinance-guide/
Petri, P. A., & Plummer, M. G. (2013). ASEAN Centrality and the ASEAN-US Economic Relationship. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2319426
Prud’homme, D., von Zedtwitz, M., Thraen, J. J., & Bader, M. (2018). “Forced technology transfer” policies: Workings in China and strategic implications. Technological Forecasting and Social Change, 134(7), 150–168. https://doi.org/10.1016/j.techfore.2018.05.022
Setiawan, B. (2020). Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach. Sriwijaya International Journal of Dynamic Economics and Business, 4(3), 161. https://doi.org/10.29259/sijdeb.v4i3.16174
Soeparna, I. (2021). The Role of The Asean Summit In The Asean Economic Dispute Settlement. Journal of ASEAN Studies, 9(2). https://doi.org/10.21512/jas.v9i2.7771
Stubbs, R. (2019). ASEAN sceptics versus ASEAN proponents: evaluating regional institutions. The Pacific Review, 32(6), 923–950. https://doi.org/10.1080/09512748.2019.1611627
Tai-leung Chong, T., & Xiaoyang, L. (2019). Understanding the China–US Trade War: Causes, Economic Impact, and the Worst-Case Scenario, A Special Issue on Sino-US Trade War, 7(2), 113–121. https://doi.org/10.1080/20954816.2019.1595331
Tao, W. (2022). China and America: Destined for Conflict? Springer Nature.
The State Council Information Office of the People's Republic of China. (2018, July 19). China and the World Trade Organization. Sl.china-Embassy.gov.cn. http://sl.china-embassy.gov.cn/eng/zt_1/WTO/
Thiel, A. (2019). Cheat Me in the Price, but Not in the Goods: Negotiating Imaginaries of Authenticity in Accra’s China Trade. Chinese and African Entrepreneurs, 25(5). https://doi.org/10.1163/9789004387423_013
Wang, X. (2018, September 22). SCMP. South China Morning Post. https://www.scmp.com/week-asia/opinion/article/2164983/why-trumps-tradewar-blessing-disguise-chinese-leaders
Wang, X., Wang, X., Zhong, Z., & Yao, J. (2020). The impact of US–China trade war on Chinese firms: Evidence from stock market reactions. Applied Economics Letters, 28(7), 1–5. https://doi.org/10.1080/13504851.2020.1764477
Weixing, H. (2018). Trump’s China Policy and Its Implications for the “Cold Peace” across the Taiwan Strait. The China Review, 18(3), 61–88.
Zeng, K., Wells, R., Wilkins, A., & Gu, J. (2022). Bilateral Tensions, the Trade War, and US–China Trade Relations. Business and Politics, 24(4), 1–31. https://doi.org/10.1017/bap.2022.8
Zhang, X. xi. (2019). Informational Discontinuity in Soybean Futures Price from the 2018-2019 Sino-America Trade War. Cornell University Graduate School. https://doi.org/10.7298/njav-qf21
Zhao, X.-X., Wen, J., Wanaguru, S., & Chang, C.-P. (2020). The Impact of Trade Conflict on Monetary Policy in Target Economies. The Singapore Economic Review, 1–24. https://doi.org/10.1142/s0217590821410022
Zhu, Z., Yang, Y., & Feng, S. (2018). Trade War between China and US. Proceedings of the 2018 International Conference on Advances in Social Sciences and Sustainable Development (ASSSD 2018), 206. https://doi.org/10.2991/asssd-18.2018.88
Published
2024-12-01
How to Cite
CHANG JIANG, Cheah; ZULKIFLI, Noraini.
Trade War Between the US-China: Impact Towards Asean.
International Journal of Advanced Research in Economics and Finance, [S.l.], v. 6, n. 4, p. 128-149, dec. 2024.
ISSN 2682-812X.
Available at: <https://myjms.mohe.gov.my/index.php/ijaref/article/view/28403>. Date accessed: 10 july 2025.
Section
English Section
