China 's Trade Deficit With China Essay

China 's Trade Deficit With China Essay

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In 2001, China entered the world trade organization, it has impacted America in both a positive and negative way. Deficit is the quantity by which expenses surpass earnings or prices. The deficit fundamentally denotes the differences concerning currency entries and losses. In the year of 2013, the U.S. trade deficit with China was estimated to be $318.7 billion. By the end of the year in 2013, the U.S. trade deficit rose to nearly $477 billion. According to Kimberly Amadeo, the deficit continues to rise due to imports increasing earlier and faster than all exports. In America, we import several items from China. Electronics, machinery, and clothing are three of the most common imported items. Most of all the imports are actually from American owned businesses and corporations. These companies choose to send off resources to China for cheap labor.
America has a trade deficit with China, because the produced goods that come from China are usually at a low cost which Americans love. Economist have concluded that China’s prices tend to be lower due to the low cost of living. The fact that the exchange rate in China is constantly valued to be lower than a dollar is also another reason. In America, it’s extremely difficult to compete with China’s low prices for labor and other things. This results in a high unemployment rate in America. Lawmakers continually try to make tariffs that go against China in hopes of making the high unemployment rate lower. If legislators become successful at this attempt, prices in America would definitely rise. This is why the laws most likely won’t change. As sad as it sounds, many Americans would rather pay low prices for goods such as clothing and electronics, which will always result in a high unemploy...


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...ost. This is why American companies tend to move to foreign countries like India, Mexico or China. The cost of labor in these areas tend to be cheaper. This also adds to the high unemployment rates. When China buys and owns our treasury, it not only helps us as Americans, but it also helps China’s economy. It helps the economy by causing it to grow and increase. It also helps keep their currency less than a dollar.
The relationship between China and America has been both positive and negative. As time goes on we can clearly see how the currency, trade, and all things related to public policy play a part in that relationship. In my opinion the most negative impact in this relationship is the loss of jobs in our American economy and society. However, the most positive impact is the growth of economies. Typically, it can be a win-win situation for both countries.


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China 's Trade Deficit With China Essay

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