The Impact of Trade Wars and Pandemics on the Asian Economy

The U.S.-Sino trade war, which started in 2018 and was followed by the novel corona (COVID-19) pandemic, has dramatically intensified the U.S.-Sino conflict with the “America First” policy of the 45th U.S. President Trump directed against China. The point of conflict, which started from the trade deficit, has spread beyond the escalation of tariffs by both countries, to include invasion of intellectual property rights, unfair industrial policies, cyberattacks, technology hegemony, national security risks, human rights, and the system or ideology of the state. Keeping in mind an emergent China, the new Biden administration of the U.S. born in 2021 moved towards strengthening ties with the pro-human rights democrats. On the other hand, China is aiming for the upgrading of its domestic industrial structure in a bid to become more self-reliant and maintain a hardline diplomatic stance as it moves forward with BRI in external relations. Revolving around China’s BRI, the intensification of the U.S.-Sino rivalry has promoted infrastructure provision and would be able to give birth to the possibility of Asian expansion into the Afro-Eurasian economic zone in the future. At the end of this chapter, we will briefly discuss the effects and issues posed by a gigantic China on the emerging economies of Southeast Asia.