Nguyễn Thị Kiều Trinh-22DH702940-MD2202

Analyzing Xi Jinping's "Chinese Dream" policy on the US-

China power competition in international trade

CHAPTER 1:
1.1 Background of study
Entering the 21st century, China-US relations need to be repositioned. The US is
currently the leading country, and China is the potential leading country. Sino-US
relations in the new period are a type of relationship between the leading country and the
potential leading country. This type of relationship is a type of strategic cooperative
relationship to solve major global problems, and is also a strategic competitive
relationship around competing for the position of the leading country. “leading country”
vs. “potential leading country”: The pinnacle of international relations.
In order to realize the "Chinese Dream," China has formulated many strategies with
ambitious policies that have an impact on the region and the world. Prominent is the
"Belt and Road Initiative" initiated by Chinese President Xi Jinping in 2013, which helps
Beijing expand its power and increase its influence with countries to achieve the goal of
becoming the world's number one position.This is considered the "Project of the
Century," aiming to recreate the famous "Silk Road" that originated in the 2nd century
BC, starting from Fuzhou, Hangzhou, Beijing (China) through Mongolia, India,
Afghanistan, Kazakhstan, Iran, Iraq, Turkey, Greece, and even reaching Japan.Through
this initiative, China seeks to find sufficiently strong resources to face the challenges in
the trend of globalization, where political and economic power can be secured by scope
and geographical space. Therefore, China plans to attract partners in the Eurasian
continent into the "Belt and Road" initiative, which is a strategic ambition aimed at
connecting economic corridors from Asia to Africa and Europe, establishing Beijing's
soft power worldwide, legitimizing its position as a central actor, and thereby imposing a
new geopolitical order.This initiative is considered the "backbone" for achieving China's
millennium goals. China is ready to invest billions of USD to build infrastructure in the
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countries along the ancient Silk Road connecting China to Europe, aiming to transform
the Eurasian region (dominated by China) into a major economic and trade area to
counterbalance the transatlantic trade area (led by the United States).China's promotion of
the "Belt and Road Initiative" not only generates significant economic benefits but also
helps to seize important geopolitical positions, increasingly creating widespread influence
in the region and the world, moving towards the realization of the "Chinese
Dream."President Xi Jinping is becoming increasingly assertive in international and
regional issues, indicating that China is gradually transitioning from the "hide and bide"
phase to the "strong rise" phase.The United States, with its position as the world's number
one superpower, has emphasized a policy of cooperation in various fields in a bilateral
manner to impose the most favorable conditions for the U.S. Meanwhile, China
emphasizes a multilateral policy in various fields of cooperation to establish extensive
soft power in international relations.

The rise of China in various fields: economy, politics, military, diplomacy, etc., is truly
alarming and makes the U.S. wary. To prevent and contain the influence and expansion
of Beijing, Washington has implemented the "pivot" strategy towards the Asia-Pacific
and Indian Oceans since the time of President George W. Bush, and it is now being
carried out by Donald Trump with new methods. According to international
commentators, China is currently viewed by the American political establishment as the
greatest long-term threat to Washington's interests, making the control and access to
international waters—where the Chinese Navy is present—necessary. However, the U.S.
will not do this alone but will proceed with allies: Japan, South Korea, Taiwan - countries
and territories that depend heavily on the U.S. and will support any initiative against
China.The establishment of an anti-China alliance, including the United States, Japan,
South Korea, Australia, India, and some Southeast Asian countries, could put China in a
very difficult position.In addition to establishing a military encirclement, Washington is
also implementing many policies targeting Beijing's " Achilles' heel," such as erecting
"barriers" to surround some Chinese companies expanding their operations in the U.S.
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The trade war initiated by the United States in March 2018 is believed to deliver a fatal
blow to China's economy, which is already shaky due to unsustainable development
policies. Entering 2018, Chinese President Xi Jinping seemed to chart a path that was
truly beneficial not only for the country but also for himself. Under Xi's leadership, China
is moving away from Deng Xiaoping's foreign policy principle of "hiding its capabilities
and biding its time, never claiming leadership." This is evidenced by his attitude when he
was ready to accept the challenge from President Donald Trump in the US-China trade
war. Stepping into 2018, Donald Trump's policy shifted to a more direct intervention in
the flow of goods trade, specifically by erecting tariff barriers on imported goods into the
U.S. for various reasons. Witnessing a series of U.S. tariff impositions on goods imported
from China, the trade war between the two leading world economies is becoming
increasingly tense (WTO Center, 2018). The climax of this war was the United States
announcing a 25% tariff on $200 billion worth of imports from China. Beijing clearly
does not want a trade war with Washington when the bilateral trade balance is in its favor
and the country is accumulating many technological achievements from the U.S. during
the trade process. The trade war with the U.S. will cause many difficulties for Chinese
businesses, as the U.S. is their largest trading partner, accounting for 18.4% of the
country's export turnover. Although China has launched many retaliatory measures
against the U.S., analysts believe that the trade war can only reduce the U.S. GDP growth
by nearly 1% in the short term, while China's will be 5%.
"Xi Jinping's 'Chinese Dream' has great significance; he wants China to become a
modern, prosperous, strong, democratic, culturally advanced, harmonious, and beautiful
socialist country. Xi Jinping hopes to achieve the 'Chinese Dream' by 2049, when China
will celebrate its 100th anniversary." Will a great superpower like the United States easily
accept the rise of China? What must the U.S. do to prevent the rise and stop Xi's "Chinese
Dream
1.2 Significance of doing research
Studying the topic "The Chinese Dream," the competition for commercial power between
the United States and China helps to understand the nature and impact of the conflict
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between the two major powers in the world. Through this research, we assess the
profound impacts on the global economy, strategies, and trade policies. From those
influences, propose appropriate solutions and strategies to adapt and cope with the
challenges and opportunities brought about by the war.
1.3 Objectives
1.3.1 Analyzing the impact of the US-China trade war on countries in the Asia-Pacific
region.
1.3.2 Analyzing the internal challenges that China faces in pursuing the "Chinese
Dream" (such as economic inequality, public debt, and social instability).
1.3.3 Analyze the role of the "Made in China 2025" strategy in enhancing China's
technological and economic standing, as well as its impact on the trade
competition with the United States.
1.3.4 Assessing the changes in trade relations between the US and China and their
impact on global economic governance.
1.4 Theoretical framework

"The Chinese Dream" in the context of US-China trade competition can be analyzed
through various theoretical frameworks. Like realism, liberalism.
1.4.1 Realism
Realism focuses on national interests and power. In international relations, countries
always seek to strengthen their power to maintain or increase their influence. The trade
war between the United States and China can be understood as an effort by the U.S. to
contain China's rise. "The Chinese Dream" represents China's aspiration to become a
superpower, and the U.S. sees this as a threat to its global leadership position.
In this context, Realism helps understand the power competition between the United
States and China in the economic and trade sectors.
Realism focuses on the roles of major countries like the United States and China in
determining trade policies and the influence of these two superpowers on the
international trade system.
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Realism helps understand the history and temporal context of this trade war, from its
inception and how it unfolded.
1.4.2 Liberalism
Liberalism emphasizes the importance of international cooperation, law, and international
organizations to resolve conflicts and promote peace.The trade war can be analyzed
through the lens of liberal theory as a failure of international cooperation. WTO or
multilateral trade agreements can be considered a way to prevent major economic
conflicts.
Liberalism helps understand the ideas of cooperation, interaction, and economic relations
between countries.
Liberalism focuses on the role of stakeholders, including the government, businesses, and
international organizations.
Liberalism can also help identify specific stages and the timeline of the trade war.
1.4.3 Hegemony theory
The stability through hegemony theory is a doctrine in international relations, combining
elements of both realism and liberalism.
The theory of hegemony is used to refer to a country or a group of countries that hold top
economic, political, and military power in the international system. The hegemon uses its
power and influence to maintain and promote its rules, values, and interests in the
international community. The structure of power and influence of major countries in the
international system and how they affect other countries.
Sovereignty includes the ownership and management of a diverse set of power resources.
More importantly, all hegemonic countries share a common characteristic: they prefer
"structural power," meaning the ability to establish "rules of the game" for the members
of the system. Only a few countries, with abundant natural resources and human capital,
have the potential to become hegemonic nations.
In the 20th century, the concept of hegemony was expanded compared to its original
meaning. Currently, it is not only applied in the field of international relations, where it
implies dominance, but also represents the organizational principle of a society where
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one class dominates another not only by force but also by maintaining the loyalty of the
masses
1.5 Reasearch question
1.5.1 What impact has the US-China trade war had on other countries, especially in the
Asia-Pacific region?
1.5.2 What are the main challenges China faces in pursuing the Chinese Dream amid
increasing trade restrictions from the United States?
1.5.3 What are the goals of the "Made in China 2025" initiative, and how is it related to
the US-China trade competition?
1.5.4 What are the consequences of the U.S. imposing tariffs on Chinese goods for the
global economy?
1.6 Realated study
1.6.1 Research on the "Chinese Dream"
1.6.2 Study "US-China Trade Competition"
1.6.3 Research on the Impact of the War on Global Supply Chains
1.6.4 Research on US-China Technological Competition
1.7 Reaseach method
Historical method:
The historical method is a research approach in which researchers use information from
the past to explain and understand current phenomena or predict the future.
The time frame of the research topic is from 2013 to 2018, when President Xi Jinping
spoke about the "Chinese Dream" and the peak of the 2018 trade war, therefore, the US-
China strategic competition is considered in the broader context of the world. the global
and regional situation
Geopolitical analysis method:
It is a research approach aimed at understanding and explaining the relationship between
geography (geographical location, natural resources, natural environment, terrain) and
international politics. This method helps researchers and policymakers assess how
geographical factors influence political, economic, and national security power in a
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global context.
Placing the US-China strategic competition under the lens of geopolitical competition,
power competition in the international market. , From here, the strategic interests and
goals of the United States and China in vying for influence in the region become clear.
Logical method, system comparison:
Logical analysis method: is a research method that uses logical reasoning to analyze,
evaluate, and clarify concepts, arguments, or complex phenomena. The goal of this
method is to clarify the logical structures and check whether the conclusions are
consistent and reasonable.
The comparative system method is a research method that uses comparisons between
different systems or cases to identify similarities, differences, and fundamental rules.
The research topic examines the strategic changes and foreign policies of the United
States and China in their areas of influence on the international market, in order to
analyze the current state of this strategic competition in the region and thereby identify
future trends.
Analytical and synthetic methods:
These are processes or techniques used in various fields to analyze discrete components,
factors, or data and then synthesize them to draw conclusions or gain a better
understanding of a specific issue or situation.
Used to collect and evaluate sources related to the topic, including the foreign policies
and strategies of the United States and China. Specifically, the "Pivot" or "Rebalance"
policy towards the Asia-Pacific region by President Barack Obama and the "Indo-Pacific:
Free and Open" strategy by President Donald Trump; the "Peaceful Rise" strategy,
followed by the "Peaceful Development" strategy and the "Harmonious World" strategy
under President Hu Jintao, and the foreign policy under President Xi Jinping aimed at
realizing the goal of the "great rejuvenation of the Chinese nation" within China's
"Chinese Dream" through the "Belt and Road" Initiative, the "21st Century Maritime Silk
Road" Initiative, and the Asian Infrastructure Investment Bank.
Forecasting method:
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It is a process or technique used to estimate or predict the future value of a variable or a

set of variables based on historical data and analytical models.
The research topic uses forecasting methods to propose trends in the strategic
competition between the U.S. and China in various regions on the international stage in
the future, based on two analytical models: Mason's "Competitive Lens" and Galtung's
"Conflict Triangle."
1.8 Scope and Limitation
1.8.1 Scope : Will focus on researching the issues affecting the competition for trade
power between the US and China.
In terms of time: The study will focus on the period of 2013 when President Xi Jinping
spoke about the concept of the "Chinese Dream." The important event was in 2018, the
peak of the US-China power competition.
Geographically: The study focuses on the two main countries, the US and China,
regarding trade competition on the international stage. Some countries affected by this
war include the Asia-Pacific region, the European Union, and important strategic
partners.

Regarding the field of research: "The study will focus on economic and political issues,
including policies and trade tariffs." Innovative technology and national security.
1.8.2 Limitation : Not delving into the military conflict, not studying the entire history of
U.S.-China relations. Focusing on the stage of the concept "the rise of the Chinese
dream" and from the moment the competition for commercial power broke out.

1.9 Organization

This research paper includes the following main points: The trade war between the two
largest powers in the world has affected neighboring countries in the region. China faces
challenges from the United States. The U.S. imposes tariffs on goods from China.
1.9.1 The impact of the US-China trade war on the Asia-Pacific region.
The Asia-Pacific region has become a dynamic development area, holding the world's
foremost geopolitical, geoeconomic, and security significance. Therefore, the
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competition, strategic adjustments, and increased consolidation of power among major

countries, especially China and the United States in the region, are making the forms of
competition and cooperation between these countries increasingly decisive.more intense.
The United States and China continue to compete for influence in various regions,
especially in the Asia-Pacific, where there are many "hotspots" and it remains a leading
development hub.world.

1.9.2 China's challenge in realizing the "Chinese Dream"

Although China's efforts to reshape the world order existed before Xi Jinping came to
power, in recent years, those efforts have become stronger. Currently, Chinese
Communist Party officials believe that China's rise is overshadowing the image of the
United States. On the other hand, Beijing's leaders are worried that the "Chinese Dream"
might stop there. The U.S. will not accept China becoming a superpower; the United
States will implement various strategies and ally with partners to curb China's rise. The
United States is the leader of the alliance of countries that imposed economic sanctions
on China following the Tiananmen Square incident and the brutal treatment of the
Uyghurs by the Chinese government.The United States has been and is obstructing
China's path to greatness in various ways. By protecting Taiwan through arms sales,
diplomatic support, and implicitly promising military aid.

1.9.3 The consequences of the U.S. imposing tariffs on Chinese goods

In a statement, Myron Brilliant, Vice President and Head of International Affairs at the
U.S. Chamber of Commerce, argued that the 25% tariff on $250 billion worth of Chinese
imports is currently causing serious harm to American consumers, farmers, ranchers, and
businesses.Previously, more than 660 American companies and business associations
signed a letter to U.S. President Donald Trump, urging the Washington administration to
abandon tax increases and seek an agreement with China.
According to this group, the imposition of additional taxes will have negative and long-
lasting impacts on businesses, farmers, households, and the American economy.
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According to statistics, the tariffs implemented in 2018 caused each American household
to incur a loss of $419 per year due to higher tax burdens and other market losses.