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In this paper we will be looking at the trade balance between the U.S. and China. The trade balance between China and the United States will be determined for the most recent past five years. The trend will also be illustrated using a graph and will offer the insights into the trade balance between these two countries. The impact of foreign trade will be analyzed, to include the two countries economic growth during the selected period, 2009 to 2013. The issues, concerns and ramifications on China’s economy will be discussed, along with the issues, concerns and ramifications on the United States economy. The nature and possible future effects on the Unites States economy, in direct result of the trade with China will be discussed in detail. This will also include the United States ability to sustain any growth and development.

By 2013 china had accounted for 15.4% of GWP and 10.5% of exports of goods and services around the world. The expansion of china’s exports and imports from 2005 to 2012 is phenomenal. In 2005 exports were valued at $762 billion and in 2012, it was rated at 2,048.8 Billion. Imports during this time increased from $660 billion in 2005 to 1,818 billion in 2012. However in 2009 china took a small hit as the GFC effected the world economy and the export value from 2008 to 2009 dropped from $US1,430 billion to $US 1,201 Billion. In 2014 the biggest exports from china were electronic equipment, machinery, clothing and accessories and furniture, thus showing the major use of the manufacturing sector in china.

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 ‘transition to a free market economy’ is the root cause for many trade tensions. While China has liberalized its trade governance over the last thirty years, it continues to maintain a couple of

For the past twenty-five years, China has witnessed an overall increase in its domestic growth (Fischler 148). According to the article, “The Rise of China as a Global Power,” by Dr. Rosita Dellios, China “is the world's fourth largest trading nation, rising from 32nd in 1978 to 10th in 1997.” Similarly, China’s GDP is also second to the United States of America, generating 13 percent of the world’s output (Dellios). Since China’s introduction into the World Trade Organization in December 2001, its average tariff dropped from 41 percent in 1992 to 6 percent in 2001, becoming one of the most open economies in the world (Dellios). China is also the world’s fastest developing economy, obtaining an annual growth of 9.5 percent through foreign

The following paper coherently illustrates the trade patterns of USA and China and describes the various trade policies developed over the past years that have impacted the respective economies of both countries alongside the effect of the same on the bilateral trade relations between the two. Based upon the previous statistics, US-China trade is considerably one of the largest trading partners in today’s economies. Both countries’ trade relations entail exchange of investment, services as well as goods varying from agricultural products to non-agricultural products. Currently, China is the second-largest trading partner, third-largest export market and the biggest source of imports for the United States. The U.S.

Given the rapid economic growth of China and its large population, along with globalization, China became the second largest economy in the world and the second largest trading partner of Canada. With its increasing importance and essential role in global economy, it is critical to understand that the trade relationship between Canada and China and the factors that affect the trade volume. With this basic

DU Yuping 1,2, Mai Jinger2 School of Economics and Management, Wuhan University 2 School of International Trade and Economics Guangdong University of Foreign Studies, Guangzhou, P. R. China, 510420

Nowadays, the outlook of the global economy is clearly not optimistic, and there are so many severe issues have been plaguing the world economy in recent years. Such as potential asset bubbles, higher financial market volatility, weaker global demand, and deteriorating monetary and credit crisis, and falling of oil prices, and so on a series of troubles around the world. (World Economic Situation and Prospects 2016 2016)Once when we discuss and analyse those economic problems, it is inevitable to associate with China’s slowdown. Indeed, since China entered WTO, China takes advantages of large population to develop the labour intensive industries like manufacturing to expand the relationship with the world by frequently international trade, as greater interaction and stronger cooperation between China and the world, Chinese economy is merged to the world economy and become an integral part of the global economy. Therefore, the Chinese slowdown is bound to affect the growth of world economy. So the question arises, why China slows down its economy? If exploring further to figure out why, one factor which cannot be ignored is the declining export. (China’s Export Decline Accelerates 2016) Thus, the study I concentrate on is to investigate the reasons of declining export in Chinese international trade.

Nowadays, the outlook of the global economy is clearly not optimistic, and there are so many severe issues have been plaguing the world economy in recent years. Such as potential asset bubbles, higher financial market volatility, weaker global demand, and deteriorating monetary and credit crisis, and falling of oil prices, and so on a series of troubles around the world. (World Economic Situation and Prospects 2016 2016)Once when we discuss and analyse those economic problems, it is inevitable to associate with China’s slowdown. Indeed, since China entered WTO, China takes advantages of large population to develop the labour intensive industries like manufacturing to expand the relationship with the world by frequently international trade, as greater interaction and stronger cooperation between China and the world, Chinese economy is merged to the world economy and become an integral part of the global economy. Therefore, the Chinese slowdown is bound to affect the growth of world economy. So the question arises, why China slows down its economy? If exploring further to figure out why, one factor which cannot be ignored is the declining export. (China’s Export Decline Accelerates 2016) Thus, the study I concentrate on is to investigate the reasons of declining export in Chinese international trade.

Fortunately, the trade regime has been significantly liberalised. China’s Open Door policy has dramatically reversed the ‘self-sufficient’ position of pre-1978, welcoming foreign investment and trade. Increasingly, China’s imports and exports are being determined by market forces. The ratio of imports and exports to Gross Domestic Product is 42:100 and China is now the 10th largest trading nation.

Throughout the past decade, China has become a ‘Manufacturing Powerhouse’ (Eloot, 2013), low salaries plus a strong supply base, makes an equation for ideal platform for exports, which china defiantly benefited from. In 2011 China became the worlds largest producer of manufactured goods and still remains to be, ‘Factory Asia now makes almost half the world’s goods’ (The Economist, 2015). This has had a positive domino effect upon the wider economy in China, living standards have doubled and the countries GDP per captia has doubled in the last 10 years ‘an achievement that took the UK 150 years to do’ (Eloot, 2013) This

Despite comprising of a great variety of industries and business models, China’s foreign trade is invariably influenced by the changes in macro environment both domestic and overseas. It would therefore be essential to conduct a PESTEL analysis to appraise the foreign trade sector as a whole, and to ascertain the opportunities and challenges for the sector in the future.

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

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

Since the initiation of the economic reform and opening up policy in 1978, China has experienced a rapid economic growth over the last few decades. An average growth rate of 10% per year in gross domestic product (GDP) has transformed China into the second largest economy with GDP of $9.240 trillion dollar in 2013. Over 500 million people were lifted out of poverty as a result of its economic success. As one of the world’s fastest growing economy, China has expanded their economic presence globally, with trading partners all over the world. Benefiting from its demographic dividend and globalization, China has become the manufacturing powerhouse and a major contributor to the world’s economy. About 232 countries import goods from China with U.S, Japan, and Korea being the major importers of Chinese products.1