The Impact of the Sino-US Trade War on Manufacturing Industry in Both Countries

Abstract

The Sino-U.S. trade war created multiple impacts on different fields for both states. Most people would agree with the statement that people's lives became worse, many firms had to close down, the conflict between states increased, and the trend of globalization was reversed. In this research, the paper mainly discusses the impact of the Sino-US trade war, and it is hypothesized that the trade war has negative consequences on both sides. Specifically, both the manufacturing industry in the U.S. and China decreased in size, and China tried to be more innovative to compensate for it; new policies and tariffs that put on the trade between China and the U.S. decreased the exchange of consuming product; the introduction of foreign investment also declined in the manufacturing industries of both sides. The research could enable people to understand the current economic status clearly and allow related companies and the consumers to make plans for future policy.