The Impact of the Sino-US Trade War on the Economy

Since the Sino-US trade war, both countries have suffered a substantial impact on technological development, international trade, and the domestic market. For China, US restrictions on crucial components and materials for Artificial Intelligence (AI) development and the manufacture of electronic devices, such as semiconductors and chips, have impeded the steps of Chinas self-development. On the other hand, the US itself suffers the negative effect of the tariff, as inflation grows and trade volume with other countries declines, bringing more pressure to the US common families. This passage mainly introduces the specified strategies used by both countries, the impact of the Sino-US trade war, and possible solutions from the perspective of the Chinese government and global treatments. According to this passage, China mainly constrains the US by limiting raw materials and cheaper products, while the US mainly constrains China by curtailing crucial components and technology. Nevertheless, both countries suffered, with no winners at all. China has faced a slower Gross Domestic Product (GDP) growth rate, and the US, especially common families, faced larger pressure due to the rising living costs. Considering these phenomena, some reasonable solutions need to be proposed. From Chinas perspective, they need to be more decisive and self-contained in the future and try to solve the problem in three directions: finding alternative products and markets; negotiation with the US government; and actively expanding domestic demand. At the world level, revolutions in World Trade Organization (WTO) in trade rules and regulations in tariffs are necessary.