During pre-modern times, China’s economy was in constant growth and stable due to its high influence in commerce along trade routes that moved across the Old World. Since China was deficient in technology and innovation that would push its economy and it commercial relationships with other countries, America became an economical power and its global influence expanded which resulted in its surmount above other economies including China’s . China lost against America in the economy and America took first place. After the September 11, however, America’s economy began to fall; it was not until 2013, when the economy began to rise. Although America’s economy is growing as time goes on, China’s economy is also growing. China’s growing rate is higher than America’s, and if this continues, China’s economy will soon pass America and takes its place as number one.
According to the U.S Department of Commerce, in January of this year American imported $ 38,187 million and exported $ 10,357 million already made $27, 839 deficit in 2014. The total trade deficit was $318,417 million in 2013, when it was $226,877million in 2009 and $ 162.254 million in 2005. The imbalance has been rose every year henceforth China became the member of the World Trade Organization (WTO) in 2001, the Chinese economy was growing by 18% each year when the US below 3%. Confronting the trade imbalance with a developing country is not the first time for the US. As the precedent, American consumable market was the driving force of the Japanese econo...
The United States and Chinese trade relation dates back in the year 1971 when these two countries re-opened doors to each other (DoS). Though the relationship of these two economies has been seen to be somewhat un-easy especially due to their recurring trade wars, there have been some significant milestones of mutually beneficial relationship.
In 1978, China was positioned 32nd on the planet in export volume, yet it had multiplied its reality exchange and got thirteenth biggest exporter in 1989. Between 1978 and 1990, the normal yearly rate of exchange extension was over 15 percent, and a high rate of development proceeded for the one decade from now. In 1978 its exported on the in the world of the overall industry was insignificant, in 1998 regardless it had short of what 2%, however by 2010, it had a world piece of the overall industry of 10.4% as stated by the World Trade Organization (WTO), with stock fare offers of more than $1.5 trillion, the most astounding in the world.
The history of United States-China relations tells a story of distrust, exploitation, naivety, and conflicting viewpoints, but also one of a struggle to bypass those differences. In recent decades, the two nations have been increasingly reliant on one another, but America still cannot overcome many of the divisions established between the U.S. and Maoist China Michael Schaller argues. Though relations became hostile the era following the end of the Second World War, China's diplomatic view of the U.S. and the West had always been quite reserved. China's attitude towards America never deterred it (America) from pursuing its interest within the Far East. During the nineteenth and early twentieth centuries, America sought to open the Chinese market to expand trade and increase the amount of missionary work within China. From the collapse of the Qing until the end of the "loss of China" in 1949, the U.S. sought to insure that the Chinese market and potential military power remained U.S.-friendly in the post-war era. After Mao's Communist Party of China seized the mainland, the U.S. began to point fingers for the loss of Chang Kai-shek's pro-American state. Tensions eventually cooled in the 1970s with Nixon's outreach to China, ushering in a détente between the powers. In this new stage of relations, America and China sought to forward mutual interests towards the containment of the Soviet bloc.
Chinese influence and expansion has reached Latin America and the Caribbean. Over the past 10 years, the Chinese government has aggressively pursued a trade policy emphasizing a growth in Chinese manufactured imports and exports of Latin American raw materials. China’s focus is on exporting raw materials; such as soybeans, metals, and oil in exchange for a vast amount of Chinese manufactured goods. This aggressive push into the Latin American trade theater has provided exponential growth in the region. However, this Chinese economic model is slowly readjusting the region back to its pre-1970’s state of over-dependence on commodity exports. In addition to becoming a major trade partner in the region, China has become a financial investor in the nations so heavily that many fear China will soon surpass the United States as the major player in the region.
The US international trade deficit is growing every year revealing the US's dependencies on imports vs. exports. The need for vast imports is not unusual, but the level of exports continues to fall. The Balance of US International Trade in Goods and Services for Jan.-Dec. of 1997 was -104.7 billion dollars and -164.2 billion this year.
U.S. Free Trade with China Sino-American relations have always been characterized as complex and tumultuous. Presently, the United States must reach a decision that would drastically affect the politics, environments, militaries, technology, and most importantly the economies of both nations. This problem the United States must face is whether it ought to allow China's entry into the World Trade Organization. There is much hesitation in taking such steps as American protectionists are weary of a nation whose expanding economy could further "Chinese influence in American politics as a result of Donorgate; continued doubts about Beijing's dismal human rights record; and worries about the U.S. trade imbalance with China- $40 billion and growing." (Shribman 44)
From the beginning of their establishment, the bilateral relations between the United States of America and China have changed throughout the time. The bilateral relations of the two countries emerged from 1970’s with the ‘Ping-Pong’ diplomacy and there have been many pauses in their mutual relations. The US and China enjoyed cooperation in economic and military spheres and the mutual relations grew massively during until the end of 1990’s. The heads of the two states began visiting each other’s countries and the economic ties were tightening year by year. However, the issues of human rights and free speech declined mutual Sino-American relations. The American principle of democracy promotion and human rights protection minimized the Sino- American relations after the Tiananmen Square events in 1989, the US Presidents-George Bush and Bill Clinton- playing a key role in determining the further American foreign policy towards China.
For thousands of years, people have been trading, buying, and selling things to each other with great distance between them, such as the Silk Road in the Middle Ages that connected China to Europe. Since then, people have invested their business in other countries in order to support their company or to support the country. Because of the technological advancements that have occurred recently, “cross-border” trade has increased so immensely, almost to the point where most people believe that the world has entered a new phase it its economic evolution. This expansion of the market has most likely been triggered by the new policies that have opened economies in countries and also worldwide. This had gone into full steam in the years after