Trade Patterns Of Usa And China

China has become a perceived threat to the U.S. economy because of the increasing trade deficit between the two countries, their ability to undercut production costs of similar products produced in the United States, and the amount of leverage that China has over the United States due to amount of money that has been lent by China. Although the United States has taken steps to close the trade deficit, such as convincing China to raise prices on their exports, there is still a considerable gap (Prasad). The United States government continues to print money that they simply can’t afford, therefore, relying even more heavily on China sustaining the value of their currency. Unless the United States is able to close the trade deficit and regain control of our economic flexibility, the problems caused by foreign countries owning our debt will remain eminent.

U.S. trade patterns are an important topic of study due to America’s power and central position in the international market. This topic of US trade partners and our trading patterns with those partners has been approached from a variety of perspectives by several economists. Namely, Sattinger (1978), Srivastava and Green (1986), Summary (1989), and Pollins (1989a and 1989b). The literature draws many conclusions from American competitiveness and the political and social factors that help explain bilateral trade patterns the choice of trade partners. And while there is an abundance of literature concerning this topic there has been little done from the perspective of how America’s trade partners have developed and shifted over the last 25 years, which is what this paper will focus on achieving. International trade flows are also an important topic and have been estimated by many economists including, Tinbergen (1962), Anderson (1979), Helpman and Krugman (1985), Helpman (1987), Feenstra (2002), and Anderson and van Wincoop (2003). Each of these researchers used a variant of the gravity model to estimate trade flows which not only demonstrates the continuing empirical validity of the model but gives firm background with which to base this analysis. The basic gravity model states that the volume of trade between two countries is proportional to the size of the two economies, and various measures of trade resistance such as geographical distance between the countries,

In 2008, the Global Financial Crisis broke out; both the American economy and the economy in the West suffered a hard blow. However, a big economy system in the East emerged unexpectedly. China is now able to challenge the America’s decades-long dominant position in economic area. Started during the middle of 1990s, China’s manufacturing industry developed rapidly that billions of exports were floating out, and China was given the title of “the world’s factory”(BBC). By the end of 2010, China with a GDP of $5.8 trillion, surpassed Japan’s GDP of $5.48 trillion, became the world’s second largest economy system (BBC). China also exceeded Japan became America’s largest foreign securities holder. Since then, China has been seen as the US’s

("FACT SHEET: U.S.-China Economic Relations." The White House. Office of the Press Secretary, n.d. Web. 30 Oct. 20created more powerful

China is one of the biggest countries along with Thailand and Japan who make goods for Australia. Being Australia’s third largest merchandise trading partner and seventh largest service export market in 2003, China might significantly affect the Australian economy through any changes made to its trade policies. A more liberal Chinese trade policy could increase Australia’s income in part through greater market access for its exports. Of every hundred dollars of national

Since the fall of communism in Russia and the end of the Cold War, China started to rise as a significant power and to this day holds the title as the world’s fastest growing economy. With that advancement, China has become an influential global player in international politics and the economy; moreover, causing many countries, developed and developing, to raise a serious level of concern and interest to the rapid development of China. In particular, Canada is now back to establishing to be on better terms with China, after Harper’s playing hard to get approach, we must work even harder in becoming a part of China’s inner circle of trade partners. Moreover, Mr. Harper at first tried an activist approach, criticizing and accusing China of poor

economies of both nations. This problem the United States must face is whether it ought

Back then we werent very good friends with China but time goes on and more oppurtonities come.Today America has created a law in which it will open a door for china. This policy began in (1899,1900)for the protection of equal privileges among countries trading with China and in support of Chinese territorial and administrative integrity.The crisis in China coincided with several major developments in the United States. A new interest in foreign markets had emerged there following the economic depression of the 1890s. The United States also had just gained the Philippines, Guam, and Hawaii as a result of the Spanish-American War and was becoming increasingly interested in China, where American textile manufacturers had found markets for cheap cotton goods.

Since 1993, China has experienced uninterrupted trade supplies and in 2013, China has overtaken the US as the world’s largest trading nation. As an economy highly integrated into the global trade system, the country benefited from a steady improvement in its term of trade since 2000. The country has multiple bilateral and multilateral trade agreements that opened new markets for its product. A Free Trade Agreement (FTA) between China and ASEAN nations which came into effect in the beginning of 2010, created the world’s third largest free trade area in terms of nominal GDP. China established FTA with nations like Korea, Peru, Pakistan, Singapore and etc.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

The major actors involved in the Chinese challenge include the US government, the Chinese Government, US and Chinese businesses, and the American Citizens. When analyzing the hierarchy of goals for the Chinese government, it is important to note that the Chinese Communist Party is not democratically elected. Their mandate to govern has been based on China’s strong economic performance. Above all else, it is crucial for the Chinese government to maintain its economic success. 29% of China’s GDP is composed of exports of goods and services.

On February 22, 1784 an American vessel named the Empress of China set sail from New York to Canton, a province in China that is now referred to as Guangzhou, in order to establish a trade relationship between the United States and China (The Chinese Magnet). Samuel Shaw, the officer of the Empress of China, was responsible for overseeing the cargo and the sale of the goods that traveled on the merchant ship. Shaw was appointed as the unofficial representative of the vessel by the United States congress, but did not gain any political recognition from the United States, nor did he have the opportunity to be in contact with the Chinese officials. The Empress of China was the first American ship to set sail from the United States to China and arrived in the region of Canton on August 28, 1784 after an eighteen-thousand-mile long expedition (The Empress of China).

The influence China is having on the United States is extraordinary. As America continues to drastically import and purchase from China, China is purchasing and investing in valuable American assets. Some of these assets include energy, entertainment, food, aviation, minerals, land and other businesses. Although we operate in a global economy, the positive short-term gains by American companies selling to foreign investors may lead to negative long-term consequences. Countries such as China are literally buying tangible assets on American soil. This trend could affect commercial prices, resources, supply and demand. When a foreign company or individual owns rights to assets in the Unites States, American citizens could be subject to their conditions. Americans could be at the mercy of market conditions set forth by an entity to whom we are directly competing with on a global scale. For better or worse, China has great influence on inflation, monetary policy and acquisition within our own borders.

We will begin our analysis of these questions by examining China’s economy at the time of Deng Xiaoping’s accession to power in 1978 and the economic growth strategy he and his successor implemented which ultimately led China to ascension into the WTO. We will then review various conditions imposed upon China by the WTO and how China reacted to those changes and to what extent these lead to China’s current status and interaction

The objective of this paper is to study the relationship of the trade between Thailand and China and its impact after open China ASEAN free trade area. Thailand and China have a limited agreement which eliminated tariffs on some 116