U.s. Trade Relations With China Trade Patterns

2005 Words Apr 12th, 2016 9 Pages
2. US-China trade patterns

Evolution of US trade relations with China.
China has been transforming into a rapidly growing economy ever since the trade reforms began in 1979 and upon its further entry into the World Trade Organization (WTO) on December 11, 2001 as the 143rd member, China’s trade liberalization and global trade commitments made at that time augmented the expansion in U.S.-China marketable ties (Morrison, 2015). The most significant clause of this WTO enterprise that proved to be beneficial for US was China’s unanimity to reduce the average tariff of agricultural and industrial commodities to 15% and 8.9% respectively. Furthermore, China agreed to rule out subsidies of agricultural exports and revoked few restrictions on some key agricultural products (Casey, 2012).

The WTO accession expected to benefit the status of U.S. exports to China as it would be accelerated due to decreased tariffs and increased market access. President Clinton also anticipated that “this agreement will create jobs for the U.S., it will create jobs for labor union members” (Casey, 2012). A detailed study of trade statistics from 2000 to 2011 establishes the following trade patterns in U.S.-China since China’s WTO accession:
KEY FINDINGS (Casey, 2012)
1. An unfalteringly rising bilateral trade deficit resulting from the quintupled value of U.S. exports to China that is stunted by the surge of imports from China into the U.S. The major source of the expanded deficit – increasing…

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