On August 14, 2019, the Dow fell 800 points, in part due to rising trade tensions between the United States and China. [236] Nine days later, on August 23, the Dow fell 623 points on the day Trump informally ordered U.S. companies to immediately seek alternatives to do business in China. [237] [238] At the end of 2019, stock markets reached record levels after increasing due to the agreement between the United States and China on the signing of the first phase of a trade agreement. [239] [240] The United States and China must resume negotiations on important policies that are not affected by the first-phase agreement. Trump`s trade war has failed to address what really concerns U.S.-China trade relations. It is time for a new approach. In September 2019, U.S. automakers reduced their capital investments and delayed the shutdown due to uncertainty caused by the trade war.

[225] Meng Wanzhou, CFO of Chinese telecommunications and electronics company Huawei, is arrested in Canada at the request of the United States. The U.S. Department of Justice accuses Huawei and Meng of violating trade sanctions against Iran and committing fraud and seeking their extradition. In clear retaliation, China arrests two Canadian citizens accused by officials of undermining China`s national security. Chinese authorities called Meng`s arrest a “serious political incident” and called for his immediate release. U.S. officials point to an unbiased and apolitical legal process, but President Trump implies that Meng`s accusations could be used as leverage in ongoing trade negotiations between the United States and China. An analysis by Moody`s Analytics estimated that in August 2019, 300,000 U.S. jobs were lost or not created as a result of the trade war, including production, storage, distribution and retail. [224] Economist Paul Krugman said in September 2020 that if Democratic candidate Joe Biden wins the U.S.

presidential election, he should maintain a firm stance against China, but focus more on industrial policy than on trade tariffs. [326] Two weeks after Beijing passed a new national security law for Hong Kong, President Trump signed an executive order ending the city`s preferential trade status with the United States. It also signs laws to punish civil servants and companies that violate Hong Kong`s freedoms and autonomy. Chinese officials are threatening retaliatory sanctions against U.S. individuals and entities. They denounce the united States` so-called interference in China`s internal affairs, including Washington`s announcement the day before to declare most of Beijing`s demands in the South China Sea illegal. Economists at financial firm Morgan Stanley expressed concern about the end of the trade war, but warned in June 2019 that this could lead to a recession. [321] Trade war was on the agenda of the G20 2018. [335] U.S. President Jimmy Carter grants all diplomatic recognition to China, while recognizing the principle of one mainland China and abandoning normal relations with Taiwan.

Chinese Vice Premier Deng Xiaoping, who is leading China through major economic reforms, visited the United States shortly afterwards. However, in April, Congress passed the Taiwan Relations Act, which allows for the continuation of trade and cultural relations between the United States and Taiwan. The law requires Washington to deliver Taipei with defense weapons, but does not officially violate the one-China policy of the United States. In August 2019, Roger Johnson of the National Farmers Union, which represents about 200,000 ranchers, ranchers and fishermen, said the trade war was creating problems for U.S. farmers, particularly in the decline in soybean exports from the United States.