Trade Patterns Of Usa And China

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,

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.

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).

Spanning over the last few decades, China’s economic rise seems nothing short of a phenomenon. The country has flourished – growing from being impoverished to what is now the world’s second largest economy. Many analysts describe this massive rise in such a short time span as “one of the greatest economic success stories in modern times.” (SOURCE) As China’s gross domestic product (GDP) rapidly escalates, Western countries are in fear of China soon becoming the world’s largest economy. However, with the help of penetrating evidence, the myth of China as being a threat to the United States’ economy is debunked in Peter Nolan’s Is China Buying the World?. Published in 2012, Nolan, an international expert on China’s economy, analyzes China as

Soybeans are the primary American export to China. Why is China be the number one

The United States and Chinese trade relation dates back in the year 1971 when these two countries re-opened doors to each other (DoS). Though the relationship of these two economies has been seen to be somewhat un-easy especially due to their recurring trade wars, there have been some significant milestones of mutually beneficial relationship.

Some major trade policies have negatively impacted the trade patterns of the two countries in a way that in spite of their growing ties, the bilateral trade relationship is often laden with complexities. According to U.S., China’s unfinished

In 2001 China became a member of the World Trade Organization. China’s accession into this organization had many advantages and disadvantages for the country. Some of the advantages of being a member of the WTO for China was the strong increase in GDP growth rate which the country experienced as a result of the facilitation of trade and the increase in imports/exports. Some of the disadvantages of the membership to the WTO were the negative effects in health care, inequalities in income distribution, and inefficient pension funds.

Over the last two decades, what was once a developing country has grown into the economic superpower that is China. China passed Japan to become the world’s second-biggest economy in terms of GDP in the second quarter of 2010 and was said to be on track to surpass the United States in 2027, with an annual GDP of $14 trillion (Bloomberg). Since China became a larger and more influential country, it is now important to realize that the global economy depends heavily on China’s actions. Their exports have lowered consumer prices across the board, and their imports have impacted commodity prices. However, in recent times, China’s economy has

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 China case was more long and complex than most accession case due to number of reasons: firstly, the country is the largest trading nation in the world and second largest sources of the United States (U.S.) deficit, so it lured a lot attention among all current applicants for joining the WTO. The accession of China will have a significant impact on these there: the restructuring of China 's domestic economic, the WTO, and the international trading environment. In addition, the accession points out many distresses for many scholars ' and policy-makers regarding the advantages, disadvantages and future of the WTO with or without China. More importantly, the entry of China into the WTO directly affects accession of another applicant, Taiwan, which has existing unsettled disputes between both countries.

However, there seem to be disagreements on China’s position and performance in the WTO in the future. It is being said that China’s view on the WTO’s multilateral trade system is ambiguous. Furthermore China is blamed for being irresponsible when it comes to maintaining he international order and global economic governance. According to Rafael Leal-Arcas, 2010, China has been playing at best a passive role and, at worst, a disruptive role with respect to the global trading system. “China would be broken, and a broken China could break the WTO. Therefore, the WTO’s most difficult challenge may be to discipline trade relations among China and other WTO members. All WTO members should work collectively to encourage China to change its behavior.” By so doing, they may promote the development of the WTO. (Susan Ariel Aaronson, 2010)

The paper attempts to offer a comprehensive review and assessment of China’s trade development strategy and trade policy reforms since China initiated its domestic economic reform and open-door policy, and also to analyze the prospect of future reforms, including some challenges that China would need to address in the context of a changing global business environment.

In 2013, referencing the previous year, the U.S. Commerce Department released import and export figures totaling 3.82 trillion USD, while China’s customs administration released figures amounting to 3.87 trillion, making China the world’s largest trading economy (Bloomberg News 2013). This news signifies that China’s trading policy and partners must be a major target of scrutiny with newfound importance. In this paper, I will discuss the history of Chinese trade policy, what constitutes Chinese trade policy, namely China’s use of free trade agreements (FTAs) and treaties, who China’s major trading partners are and relations with each one, and how

The globalization of international trade through the WTO and free trade agreements has largely nullified America’s power advantage and disproves the ability of balance of power politics to explain the international system. America currently has numerous, significant trade deficits with countries such as Mexico and China. While it can be argued that free trade helps the American consumer, it is undeniable that these deficits diminish the power that each country holds. In the case of Mexico, a much weaker power, the United States loses jobs and manufacturing to that country because of NAFTA and the WTO. In a classical realist world, America would be able to dictate the terms of trade that would benefit American workers and American economic prosperity. However, liberal trade institutions put all countries on the same playing field regardless of their military might. China is