A real driver of US China trade conflict Prepared By Faisal Hafiz ID:2022-1-10-213 Background of US-CHINA Trade Conflict The trade war between the two superpowers, USA and China emanated when the US imposed three rounds of tariffs on Chinese product this year totally $ 250 billion worth of goods. Background of US-CHINA Trade Conflict • Economic Competition • Geopolitical Ambitions • Technological Rivalry • Ideological Differences • Trade Practices and Policies US fear of China's growing power The underlying cause of the trade war is not economic but political, specifically US fear of China's growing power and its challenge to US hegemony. Hegemonic Stability Theory (HST) How a dominant power creates and maintains a stable global economic system. HST indicates that the international system is more likely to remain stable when a single state is the dominant world power, or hegemon Power Transition Theory (PTT) Suggests that when a rising power challenges the dominant power, conflict is likely. The theory posits that major wars are more likely to occur during periods of power transition, particularly when a rising power threatens to surpass or challenge the dominant power in the international system. China’s Initiatives Belt and Road Initiative (BRI), Asian Infrastructure Investment Bank (AIIB), and Made in China 2025, seen by the US as attempts to reshape global order and challenge US dominance. US Responses Efforts to counter China's initiatives, like promoting alternative infrastructure development and opposing the AIIB. Thank You