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...
... middle of paper ...
...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.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- 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.... [tags: United States, Unemployment, United States dollar]
817 words (2.3 pages)
- Analysis of the US-China Trade The U.S. trade deficit has risen more or less steadily since 1992. In the second quarter of 2004, the trade deficit relative to GDP surpassed the 5 percent mark for the first time. Many economists already considered trade deficits above 4 percent of GDP dangerously high. The fear is that continued growth in this external imbalance of the U.S. economy will ultimately spook overseas investors. http://www.americanprogress.org/issues/2004/09/b193700.html The United States and China share the most imbalanced bilateral trade relationship in the world.... [tags: Trade Deficit Economics Analysis China]
1570 words (4.5 pages)
- “Made in China” is a label we can find nearly every product in the U.S. consumer market, furthermore the world market. The products that are made-in-China replaced the made-in U.S.A. gradually and nowadays it is hard to find the products which are not made in China, anywhere in the world. The biggest supporter of the growth in Chinese economy and the National power is the U.S unintentionally. China was able to take over world’s processing industry because America was the one gave up the industry.... [tags: trade deficit, market, export, import]
1243 words (3.6 pages)
- 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.... [tags: US-China Commercial Relations]
2820 words (8.1 pages)
- Introduction: Trade between China and the United States is a battle we all know the U.S. has been fighting for quite some time. This topic is very important in our field of Apparel and Textiles. It is an ongoing processes as the U.S. tries to figure out ways on how to blend the gap of imports and exports. The U.S. is billions of dollars in debt with China because of the trade difference. Trade with China has gotten our country in a big hole that we can 't come out over a course of a few years.... [tags: International trade, Export, Trade, United States]
1521 words (4.3 pages)
- Trade between China and the United States According to APEC (Asia-Pacific Economic Cooperation), the United States is one of the most important trading partners with China in the Asia and the Pacific region. China is the second largest trading partner of the U.S. after the EU. The accumulated U.S.-China trade added up to $592 billion in 2014 (Morrision). The real-world case for the trade between China and the U.S is partially matches H-O-S basic proposition. According to H-O-S basic proposition, an economy will export goods that are intensive in its abundant factors of production and import goods that are intensive in its scarce factors of production.... [tags: Export, International trade, United States, Import]
1181 words (3.4 pages)
- Brendon Clair Dr. Ruben Berrios Econ 355, International Trade and Finance April 30, 2015 Impact of China’s Unfair Trade Practices on the US economy Investopedia defines unfair trade practices as “Using various deceptive, fraudulent or unethical methods to obtain business” (Investopedia). These methods include false advertising, tied selling and misrepresentation as well as other unlawful acts declared by statute. Over the past decade, the American economy has experience troubles. One of the main problems tying to the troubles over the past decade have been persistent trade deficits, most of them being with China.... [tags: International trade, Export, Balance of trade]
992 words (2.8 pages)
- It is impossible to explore the culture of the East, of China especially, without encountering the importance of tea. China has a long tradition of tea drinking, and was responsible for acquainting the East and the West. Tea gained popularity throughout the Western world, particularly in Britain, and demand for it increased, China entered a challenging period in their history. Exploring this story shows tea as a social, economic, and political commodity, the catalyst for this conflict and change.... [tags: opium war, tradition, culture]
1631 words (4.7 pages)
- The United States and China’s economic partnership has increased dramatically over the past years. Having a big population and a fast paced economy, China is a major market for the U.S. government. Thus, economic ties have stretched due to several issues, including China’s vast and expanding trade goods to the United States. China's fast transition to higher status, the U.S. and China merger has pushed the international relations into the spotlight of the world today. Due to its low rate of saving, the United States takes from outside sources to finance the federal budget deficit.... [tags: US and China, economic partnership]
1188 words (3.4 pages)
- In November of 2004, the United States ran a fifty-four billion dollar trade deficit, translating to over 600 billion for the entire year. This deficit is a result of the disparity between the amount of goods that the US imports and the amount it exports. To equalize this deficit in its current account, the American government sells assets from its capital account, often to foreign investors. This phenomenon is seen as a serious threat to the success and continued growth of the nation’s economy, tied in with popular concerns that the United States is losing its competitive and dominant edge in global economics.... [tags: essays research papers fc]
1479 words (4.2 pages)