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Trade Relations of the US and China in the Last Four Decades

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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. According to USSB, the trading volume from the year 1971 has significantly been on the rise both in terms of Exports and imports; up to to levels of US Dollars 532.2 Billion in 2012 from a low of US Dollars 4.7 in million in 1972. In a recent wave of discussion on CNBC of how the “Trade gap between these two giants has cost the United States a whooping US Dollars 37 Billion in wages”. The increasing deficit between the two giants has been linked to the loss of wages up to the highs of US Dollars 37 Million in the year 2011 (Holliday). The study conducted by the Economic Policy Institute (EPI) suggests that over 2.7 million jobs have been lost within the United States from the year 2001 to 2011. The most affected industry is the Manufacturing sector. The study also suggested that the displaced employees upon getting other jobs in non-trade related industries lost over US Dollars 13,504.00 per worker which on average amounted to US Dollars 37 Billion (Holliday). These deficits have been seen to harm the working American families especially those that are within the most affected sectors like manufacturing. These trade relations have been affected by the strained quarrels over China’s alleged manipulation of its currency and usage of industry-subsidies which are deemed illegal. This has triggered the argument within the American government that it is out of these malpractices that the United ... ... middle of paper ... ...r un-Making the entire global economic system that initially was designed and dominated by the United States since World War Two. Works Cited Holliday, Katie. “Trade gap with China costs the US $37 billion in wages”. CNBC. 2013. Web. 14 Nov. 2013. The Heritage Foundation. “The Complicated History of U.S. Relations with China”. THF: Leadership for America. 2012. Web. 10 Nov. 2013. United Sates Sensus Bureau (USSB). “Trade in Goods with China.” Foreign Trade. 2013. Web. 14 Nov. 2013 U.S. Department of State (DoS). “CHRONOLOGY OF U.S.-CHINA RELATIONS, 1784-2000.” Office of the Historian. 2000. Web. 14 Nov. 2013
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