Economic Nationalism: U.S. and Chinese Style

Abstract

The United States and China have the two largest national economies in the world and are also the world’s leading proponents of Economic Nationalism. In this context, this term refers to the use of national policies to promote exports while creating barriers to imports and is a twenty first century version of 17th century mercantilism. Both nations hold these polices, but there is a stark contrast in how they are implementing them. As both nations have similar, but conflicting goals, they have been locked in a two year trade dispute that could destabilize the global economy as a whole. Recently, the two nations announced a historic phase I agreement to suspend trade hostilities. This development provides a good opportunity to explore some of the ramifications of the rise of Economic Nationalism and what it portends for the future.