Foreign Trade with China

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From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This…show more content…
The paper also proposes regulations on how the united states can impose the regulatory measures like tariffs, taxes and foreign trade policies. How the foreign trade relations have affected American markets The foreign trading relations between the United States and china have had massive impacts in the American market. To start with, the steady rise of china are attributable to her trading activities with the United States, there has been a constant increase in trading volume between the two nations, which reached $211.6 billion in the year 2005. This is over eighty times more than the trading activities in 1979 when the two countries engaged in normal trading activities (Amadeo, npag). The trading activities amounted to $2.4 billion in the year 1979. The United States in the top destination of most of the exports from China, on the other hand, the Chinese also buy more goods from the United States. This led to the rise of US exports to China by 21.5 percent between the year 2001 and 2005 (Amadeo, npag). The massive trading activities between the United States and China has facilitated the trade imbalance. For instance in the year 2005, the United States had a bilateral trade shortfall of 202 billion with China. This was a significant increment from the previous year since it amounted to $162. This has negative effects on the American market since they are becoming increasingly dependent on the Chinese for their imports. Therefore, the deficit is resulting

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