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International Journal of Frontiers in Sociology, 2024, 6(11); doi: 10.25236/IJFS.2024.061106.

The Deteriorating US-China Relations’ Impact on China’s Economic Crisis in 2024

Author(s)

Qingyi Li1, Jitong Yao2

Corresponding Author:
Qingyi Li
Affiliation(s)

1Bachelor of Economics, University of California, Santa Cruz, United States of America

2Bachelor of Sociology, University of California, Berkeley, United States of America

Abstract

This article seeks to identify the effects of the diminishing relations between the United States of America and China on the economic crisis in China in 2024, explicitly considering the impact of geopolitical tensions, financial sanctions, and withdrawal of foreign direct investment on the economy of China. The study employs secondary data collected from economic and financial reports, government records, and publications to analyze the relationship between these two leading world economies and the impact created globally. The themes developed include trade tension, supply chain disruption, sanctions, and trends in foreign investment, which help ascertain the general economic implications of these relations. While analyzing the hypothesis, the results suggest that worsening relations between the United States and China have contributed significantly to China’s financial problems, such as financial illiquidity, layoffs of corporate entities, capital flight, and reduction in purchasing power. Due to the political instability between China and other countries, including the US, FDI has declined sharply, with multinational companies fleeing China and impacting other members of the global economy. For future research, the researcher might consider using primary data through qualitative and quantitative methods to draw new and accurate insights from the participants rather than relying on other researchers and also broaden the research by considering other relations between China and other countries, not only the US to address the limitation of this study such as reliance on secondary data and also narrowing to US-Chian relations.

Keywords

Sino-American, foreign domestic investment, financial liquidity, corporate layoffs, unemployment, geopolitical issues, GDP

Cite This Paper

Qingyi Li, Jitong Yao. The Deteriorating US-China Relations’ Impact on China’s Economic Crisis in 2024. International Journal of Frontiers in Sociology (2024), Vol. 6, Issue 11: 33-43. https://doi.org/10.25236/IJFS.2024.061106.

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