The US-China Trade War: What Is Africa’s Gain?

  • Folasade Bosede AdegboyeEmail author
  • Gbadebo Odularu
  • Oluwatoyin Augustina Matthew
Part of the Advances in African Economic, Social and Political Development book series (AAESPD)


A trade war occurs if a country reacts against the other by increasing import tariffs or employing some other constraints on the rival country’s imports. A tariff usually is termed as a charge or levy obligated on the import of goods into a country. In a global context, a trade war could be severely destructive to the consumers and industries of both countries, of which the transmission could be amplified to cause disturbances in several facets of both countries. They could further be referred to as the spinoff of protectionism, which government of countries utilize from time to time in the form of policies which restrain the trade facilitation process. Countries most times usually initiate protectionist concept with the intention of barely preserving domestic industries and entrepreneurs from foreign rivalry. Other than the preservation of domestic industries, it also could be utilized to readjust deficits in trade.


U.S, China U.S-China trade Africa Trade facilitation Opportunities 


  1. Abiad A, Baris K, Bernabe JA, Bertulfo DJ, Camingue-Romance S, Feliciano PN, Mariasingham MJ, Mercer-Blackman V (2018) The impact of trade conflict on developing Asia. Asian Development Bank Working Paper Series No. 566Google Scholar
  2. Adekunle B, Korzun M (2017) Trading with China: how can Africa benefit? In: Odularu G, Adekunle B (eds) Negotiating south-south regional trade agreements, advances in African economic, social and political development. Springer International PublishingGoogle Scholar
  3. Aeberhaedt R, Buono I, Fadinger H (2011) Learning incomplete contracts and export dynamics: theory and evidence from French firms. Vienna Economics Papers 1006, University of Vienna, Department of EconomicsGoogle Scholar
  4. Araujo L, Mion G, Orneals E (2012) Institutions and export dynamics. CEPR Discussion Paper 8809. Centre for Economic Policy Research, LondonGoogle Scholar
  5. Broad R (1995) The political economy of natural resources: cases of the Indonesian and Philippine forest sector. J Dev Areas 29(3):317–339Google Scholar
  6. Bulte EH, Damania R, Deacon RT (2003) Resource abundance, poverty and development. UCSB Working Paper. Department of Economics, University of California, Santa Barbara, CAGoogle Scholar
  7. Carpenter MA, Dunung SP (2012) Challenges and opportunities in international business, vol 1. Retrieved from
  8. Carvalho M, Azevedo A, Massuquetti A (2019) Emerging countries and the effect of trade war between US and China. Economies 7(45):1–21Google Scholar
  9. Devarajan S, Go DS, Lakatos C, Robinson S, Thierfelder K (2018) Traders’ Dilemma: developing countries’ response to trade dispute. World Bank Policy Research Working Paper. WPS8640Google Scholar
  10. Fang YG, Liu JS (2014) The modification of North China quadrangles in response to rural social and economic changes in agricultural villages: 1970–2010s. Land Use Policy 39:266–280CrossRefGoogle Scholar
  11. Feenstra RC, Akira S (2018) The ‘China shock,’ exports and U.S. employment: a global input-output analysis. Special Issue Paper Rev Int Econ 6(5):1053–1083Google Scholar
  12. Gulker M (2019a) Trump’s tariffs did nothing to boost the steel industry. Retrieved 15 December, 2019 from
  13. Gulker M (2019b) This is how a nationalist raises your taxes. Retrieved 15 December, 2019 from
  14. Heleiner GK (1992) Introduction. In: Helleiner GK (ed) Trade policy industrialization and development: new perspectives. Clarendon Press, OxfordCrossRefGoogle Scholar
  15. Helleiner GK (1995) Trade, trade policy and industrialization reconsidered, World Development Studies No. 6, WIDER (UNU), HelsinkiGoogle Scholar
  16. International Monetary Fund (IMF) (2018) Growth challenges for the next decade and beyond. Regional Economic Outlook: Asia Pacific, Washington, DC, OctoberGoogle Scholar
  17. Johanson J, Vahlne JE (1977) The internationalisation process of the firm—a model of knowledge development and increasing market commitment. J Int Bus Stud 8(1):23–32CrossRefGoogle Scholar
  18. Johanson J, Wiedersheim-Paul F (1975) The internationalization of the firm: Four Swedishcases. J Manage Stud 12(3):305–322CrossRefGoogle Scholar
  19. Jung JW (2017) The impact of trade liberalization in Africa. Korean Institute for International Economic Policy (KIEP) Working Paper 17-05Google Scholar
  20. Krauss M (1997) How nations grow rich: The case for free trade. Oxford University Press, New YorkGoogle Scholar
  21. Li YR, Long HL, Liu YS (2015) Spatio-temporal pattern of China’s rural development: a rurality index perspective. J Rural Stud 38:12–26CrossRefGoogle Scholar
  22. Massini S, Pern-Ajchariyawong N, Lewin AY (2010) Role of corporate-wide off shoring strategy on off shoring drivers, risks and performance. Ind Innov 17(4):337–371CrossRefGoogle Scholar
  23. McKinsey Quarterly (2010) Africa’s path to growth: sector by sector.
  24. Michaely M (1991) The lessons of experience: an overview. In: Sheperd G, Langoni CG (eds) Trade reform: lessons from eight countries. ICEG, San FranciscoGoogle Scholar
  25. Mulwa R, Mariara J (2016) Natural resource curse in Africa: Dutch disease and institutional explanations. AGRODEP Working Paper 0029Google Scholar
  26. North DC (1991) Institutions. J Econ Perspect 5(1):97–112CrossRefGoogle Scholar
  27. Nurkse R (1953) Problems of capital formation in underdeveloped countries. Cambridge University Press, New YorkGoogle Scholar
  28. Okidi CO (2007) Application of environmental paradigm to tame conflict and poverty in natural resource-rich African countries. In: Daibert A (ed) Direito Ambiental Comparado. Belo Horizonte, Editora Forum 2008, Rio de Janeiro, BrazilGoogle Scholar
  29. Oyejide TA (1999) Options for future trade liberalization in Sub-Saharan Africa. In: Oyejide ABN, Greenaway D (eds) Regional integration and trade liberalization in Sub-Saharan Africa, vol 4: synthesis and review. Macmillan, LondonGoogle Scholar
  30. Rostow WW (1960) The stages of economic growth: a non-communist manifesto. Cambridge University Press, CambridgeGoogle Scholar
  31. Scott RE, Mokhiber Z (2018) The China toll deepens: growth in the bilateral trade deficit between 2001 and 2017 cost 3.4 million U.S. jobs, with losses in every state and congressional district. Economic Policy Institute, Washington, DC.
  32. Söderlund B, Tingvall P (2014) Dynamic effects of institutions on firm-level exports. Rev World Econ 150:277–308. Scholar
  33. Suranovic S (2015) International trade: theory and policy. FlatWorld, Boston, MAGoogle Scholar
  34. UNCTAD (2015) Building the African free trade area: some suggestions on the way forward. United Nations, New York and Geneva UNCTAD/DITC/2015/1Google Scholar
  35. U.S. Bureau of Economic Analysis (2018) International trade in goods and services.
  36. Wang Z, Wei S-J (2018). Re-examining the effects of trading with China on local labor markets: a supply chain perspective. NBER Working Paper: 19Google Scholar
  37. Williamson OE (2000) The new institutional economics: taking stock, looking ahead. J Econ Lit 38(3):595–613CrossRefGoogle Scholar
  38. World Trade Report (WTO) (2018) The future of world trade: how digital technologies are transforming global commerce. WTO, GenevaGoogle Scholar
  39. Zhao D, Parolin B (2014) Merged or unmerged school? School preferences in the context of school mapping restructure in rural China. Asia-Pacific Educ Res 23(3):547–563CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Folasade Bosede Adegboye
    • 1
    Email author
  • Gbadebo Odularu
    • 2
    • 3
    • 4
    • 5
    • 6
  • Oluwatoyin Augustina Matthew
    • 7
  1. 1.Department of Banking and FinanceCovenant UniversityOtaNigeria
  2. 2.Department of Economics and FinanceBay Atlantic UniversityWashingtonUSA
  3. 3.Socio-Economic Research Applications and Projects (SERAP LLC)WashingtonUSA
  4. 4.Center for Research on Political Economy (CREPOL)Dakar-YoffSenegal
  5. 5.Trade, Economics and Agribusiness DivisionSSCG ConsultingBirminghamUK
  6. 6.American Heritage University of Southern California (AHUSC)OntarioUSA
  7. 7.Department of Economics and Development StudiesCovenant UniversityOtaNigeria

Personalised recommendations