The Economic Performance of China in Trade War: The Case Study of Three Global Economic Crises in 1997–2020

Abstract

This chapter aims to examine the comparative economic performance of the United States versus China in the digital era. This chapter uses the Threshold Autoregressive (TAR) model method in comparing economic performance. The US economy was shaken quite significantly in 2008 due to the subprime mortgage crisis. On the other hand, China’s economic performance continues to improve. Based on the estimation results of China’s economic performance which continues to increase with faster economic growth than the United States, it is found that China has resistance to shocks from the 1997 crisis, the 2008 subprime mortgage crisis, and the European debt crisis in 2011 and has the potential to compete with the United States as the dominant country in economic terms. China’s economic growth is getting faster and faster since 1979. It indicates that China’s economy can surpass the US economy, which currently owns the largest gross domestic product (GDP) in the world.

Citation

Sasongko, B., Bawono, S. and Prabowo, B.H. (2021), "The Economic Performance of China in Trade War: The Case Study of Three Global Economic Crises in 1997–2020", Barnett, W.A. and Sergi, B.S. (Ed.) Environmental, Social, and Governance Perspectives on Economic Development in Asia (International Symposia in Economic Theory and Econometrics, Vol. 29B), Emerald Publishing Limited, Leeds, pp. 1-11. https://doi.org/10.1108/S1571-03862021000029B022