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There has been a dual view of trade since the time of the ancient Greeks. The two sides of these philosophers views are the recognition of the benefits of international exchange, but that there is concern that certain domestic industries would be harmed by foreign

The author demonstrates a well written engaging argument explaining the key points in the disparity of bilateral trade between China and the US. Meanwhile, discussion on key aspects of reasoning is lacking with emphasises on developing several points rather than expanding on thought provoking discussion. Noteworthy improvements can be ensued to make the article deep in analysis and so warrant publication.

National economics are often adversarial in nature, a global contest where countries seek to gain advantage over their neighbors, all in the name of wealth and gain. America is no stranger to the game; the U.S. has been the world’s economic leader for the better part of a century. China, however, is the leading contender for the economic top-spot (), and America continues playing directly into China’s hand. America’s current trading posture with China is drastically skewed in China’s favor; if America is going to preserve its position as the leading economic power, existing U.S.-Chinese trading agreements will need to be revised, and additional regulations must be introduced to promote balanced dealing.

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.

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:

Exporting, Importing, and Countertrade are three key factors of the barter and trade system between different countries and nations. Although there are many negatives when it comes to the barter system between countries, there are far more positives at hand. With a greater number of positives to take into account, the negatives are outweighed. While these key factors are very similar, they are very different in their specific jobs, and come with different risks. In the barter and trade process between nations these three tactics are used to achieve the same goal, receiving goods that are not locally attainable.

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. government’s debt purchased by China provides US the benefits of low interest rates (Morrison, 2015). While for few this economic relationship is considered to have a positive effect as it helps to fund the U.S. economy, for others it is an attributable concern that China may gain more power over the U.S (Loc.gov, 2016).

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

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

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.

My interest in International Economics, led me to apply to the Seward Fellows program – an honors program at Union College – and as part of that program I designed an independent theme minor to analyze China’s trade. Since I applied to graduate one year early when I was a sophomore, I chose to compress my two-term Seward project in six weeks in the summer of second year. My Seward project was to investigate the behaviors of the yuan-USD exchange rate in the past ten years. After evaluating the growth rate of the ratio of China’s foreign reserves over imports from 2005 to 2014, I noticed that the year of 2009 was a turning point; before

changes in the economy. The previous example of China as an exporter is true, however it must

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

In addition, sectoral unemployment in China results from a sharp decrease in certain industries, especially for labour intensive factories. As labour costs in China have risen remarkably, from around 16,000 yuan in 2004 to 56,339 yuan in 2014 (China Labour Bulletin, 2014), investors prefer passing those low-cost activities to low-income countries in South-East Asia, such as Indonesia, Vietnam and Cambodia. US shoe imports market illustrated this phenomenon. The proportion of China for this market declined from 87% in 2009 to 79% in 2014(The Economist, 2015). Moreover, in three Northeastern Provinces of China, heavy industries used to cluster among these

Over the course of the last decade, the world has witnessed the unprecedented changes in the patterns of international trade. First of all, the share of the United States and the European Union combined in the world trade has decreased