Research on Trading Friction between China and the US from Game Theory Perspective

Abstract

Since the development of free trade theory, global economy has developed extremely rapidly. However, protectionism has played a negative role in free trade. It is widely known that the trade friction between China and the US has attracted attention by the whole world and the result may influence the global economy. This paper will analyze the trade friction from game theory, how China and the US can gain optimal payoff and which kind of strategy will be used by China and the US.