The Sino-US Trade Dispute and Its Impacts on the Global Supply Chain

Abstract

The Sino-US trade war is a hot problem nowadays. The trade war has lots of negative things for people and government, such as increasing the prices of imports and costs of international companies, the dynamic market, and the structural change of the global supply chain. This paper is aimed at helping readers to understand this trade war and to foresee the dynamically global market. This paper explains the reasons why the trade war breaks out and its impacts on the global supply chain. The change in the supply chain of smartphones is regarded as an example to infer the change of structures for the global supply chain. We will use the Ricardo-Viner model to help us analyze whether companies related to the supply chain of smartphones will gain benefits or suffer loss because of influences of trade war. Finally, we conclude that the Sino-US trade has big negative impacts on the global supply chain. It will cause a huge structural change in the global supply chain. Consumers and companies may also bear the cost of this trade war.