Model of China-US Relationship After COVID Pandemic

DOI

10.2991/assehr.k.211020.337How to use a DOI?

Keywords

International Trade, US-China Trade War, quantitative analysis, game theory

Abstract

After the US-China Trade War starting from 2017, the conflicts in terms of both democracy and finance have been walloping the economy of two countries. Starting from the explosion of COVID-19, the recession effect brought by the Trade War was deepening. This new unusual pattern between China and the US then became the mainstream of the contemporary world. From Foot R. (1995), it is exactly the time that she predicted that “the United States clearly gained in terms of its structural power as a result of the normalization of ties and the introduction of reform policies in China”[1]. This paper analyzes the economic behavior and gives a prediction of further US-China relationships by establishing an economic model, standing from the investors’ perspective. A previous result based on the standard open economy model is introduced in the establishment. The methodology takes the advantage of linear regression, hypothesis test, game theory and other theoretical results to yield a numerical conclusion. And the key question includes: How close is it between China and US economy; what would China and the US do based on a static game; and what should we investors do in this situation. The conclusion lies on the prediction of only economic analysis but irrelevant to democracy or other policies, and this paper would indicate a direction for international markets, especially on the FOREX market

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yutao Wang
PY  - 2021
DA  - 2021/10/21
TI  - Model of China-US Relationship After COVID Pandemic
BT  - Proceedings of the 2021 International Conference on Public Relations and Social Sciences (ICPRSS 2021)
PB  - Atlantis Press
SP  - 1249
EP  - 1255
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211020.337
DO  - 10.2991/assehr.k.211020.337
ID  - Wang2021
ER  -