This study examines the causes of Sino-US trade disputes by using a dollar auction game to analyze global imbalances. The authors argue that the trade disputes between China and the U.S. should be deemed as a nonzero-sum game as well as a dollar auction in the abstract. In this game, the interests of both parties involved in the bidding will fi nally be damaged, and the only winner is the “auctioneer”. In this case, the auctioneer refers to all the issues that have concerned both sides ever since the process of globalization began. Through tracking the trajectory of economic development and social-political changes in both China and the U.S., it is found that the eff ects of the growing US-China tensions extend into individual society concerning unemployment, income inequality, and many other social factors. The authors indicate that the trade disputes will not have eff ectively ameliorated either country’s problems but will have created new troubles. And if the trade war continues, it will soon usher in a lose-lose situation. However, as the game operates with the condition that there are no collusions or threats, this analogy makes clear the necessity of an open dialogue. The authors suggested that to solve the domestic problems in the U.S., adjusting domestic taxes, such as consumption tax, is more reasonable and eff ective than imposing tariff s and establishing other trade barriers.