UPSC Prelims Practice Questions — U.S., China, and the search for stability

Q1. In the context of the May 2026 Beijing summit, the 'US-China Board of Trade' chartered by the two sides is best described as:

  • A. A government-to-government institution to manage bilateral trade across non-sensitive goods
  • B. A private consortium of American and Chinese exporters set up to bypass tariffs
  • C. A WTO-supervised arbitration panel to adjudicate the 2018 tariff disputes
  • D. A joint sovereign fund to finance Chinese purchases of Boeing aircraft

Q2. With reference to the Busan Trump-Xi summit of October 2025, consider the following statements: 1. It was the first Trump-Xi meeting in six years and was held on the sidelines of the APEC summit in South Korea. 2. The United States halved its 20% fentanyl-linked tariff on Chinese goods to 10% and paused an expanded technology export blacklist for one year. 3. Unlike the January 2020 Phase One agreement, the Busan truce contained no agricultural purchase commitments from China. Which of the statements given above is/are correct?

  1. It was the first Trump-Xi meeting in six years and was held on the sidelines of the APEC summit in South Korea.
  2. The United States halved its 20% fentanyl-linked tariff on Chinese goods to 10% and paused an expanded technology export blacklist for one year.
  3. Unlike the January 2020 Phase One agreement, the Busan truce contained no agricultural purchase commitments from China.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. The October 2025 Trump-Xi meeting at Busan that produced the one-year trade truce was held on the sidelines of which multilateral summit?

  • A. Asia-Pacific Economic Cooperation (APEC) summit
  • B. G20 Leaders' Summit
  • C. ASEAN-plus East Asia Summit
  • D. BRICS Leaders' Summit

Q4. Between July 2018 and September 2019, how many rounds of retaliatory tariffs did China impose in response to the US Section 301 tariffs?

  • A. Two
  • B. Three
  • C. Four
  • D. Six

Q5. The 2018 US tariffs on Chinese goods were imposed pursuant to a Section 301 investigation. Under US law, Section 301 investigations and the resulting reports are conducted by which office?

  • A. Office of the United States Trade Representative (USTR)
  • B. US Department of the Treasury
  • C. US Department of Commerce, Bureau of Industry and Security
  • D. US Department of State, Bureau of Economic Affairs

Q6. Under the January 2020 US-China Phase One agreement, China committed to purchase how much in ADDITIONAL US goods and services over the two years covered by the deal?

  • A. US$100 billion
  • B. US$150 billion
  • C. US$200 billion
  • D. US$250 billion

Q7. The US-China 'Phase One' agreement of January 2020 is most accurately described as:

  • A. A partial, interim trade deal that de-escalated tensions via Chinese purchase commitments while leaving most existing tariffs in place
  • B. A comprehensive free-trade agreement that eliminated substantially all bilateral tariffs
  • C. A WTO-brokered settlement withdrawing the disputes both sides had filed
  • D. A currency accord fixing the yuan-dollar exchange rate to curb Chinese exports

Q8. When China challenged the additional US tariffs at the WTO on 4 February 2025 (DS633), it did so by triggering which stage — the mandatory FIRST step of the WTO dispute settlement process?

  • A. A request for consultations
  • B. Establishment of a dispute panel
  • C. An appeal to the Appellate Body
  • D. A request for arbitration on retaliation

Q9. The 'G2' (Group of Two) concept, which Trump sought to revive at the 2025 Busan meeting, envisages joint co-governance of major global issues led primarily by which pairing?

  • A. The United States and China
  • B. The United States and the European Union
  • C. The United States and Russia
  • D. China and Russia

Q10. In analyses of US-China economic relations, the term 'decoupling' most precisely refers to:

  • A. The shifting of US sourcing away from China to other partners, partially unwinding deep economic interdependence
  • B. The complete and immediate severance of all trade and investment ties between the two economies
  • C. The pegging of the yuan away from the US dollar to a basket of currencies
  • D. China's withdrawal from the WTO's dispute settlement mechanism

Q11. With reference to the 'strategic stability' framework agreed at the May 2026 Beijing summit, consider the following statements: 1. It commits China to buy at least US$17 billion per year of US agricultural products in 2026-28, additional to the soybean commitments made at Busan in October 2025. 2. As the cornerstone of the deal, the two sides chartered two new bodies — the US-China Board of Trade and the US-China Board of Investment. 3. The summit approved China's first commitment to purchase American Boeing aircraft since 2017 — an initial batch of 200 jets. Which of the statements given above is/are correct?

  1. It commits China to buy at least US$17 billion per year of US agricultural products in 2026-28, additional to the soybean commitments made at Busan in October 2025.
  2. As the cornerstone of the deal, the two sides chartered two new bodies — the US-China Board of Trade and the US-China Board of Investment.
  3. The summit approved China's first commitment to purchase American Boeing aircraft since 2017 — an initial batch of 200 jets.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3