Unveiling US-China Trade Relations: Pros, Cons and Realities

2383 Words5 Pages

U.S and China trade deals The U.S and China relations has intend become very well known in the international scene. There are some many good things about trade and the economy such as competition, security, wealth, fairness, globalization interdependence and domination and strength for all countries that open their border to trade and influence between other countries. It is also a great thing to bash in politics in the U.S. There are benefits to trade to each country as wells as what are the disadvantages of the trade deals and are there certain agreements that are being manipulated and the manufacturing sector in the U.S. economy and the reason why China and the U.S. behave they say it does with each other (Mearsheimer) in the international …show more content…

In 2001 China entered the WTO it has made major stride in the world economy especially with trade agreements with the biggest capitalist economy and the biggest GDP and most developed country in the world the United States of America which has nearly 2.3 trillion of exported goods and service in 2013 (President, n.d.) When China entered in the WTO it had become the sixth largest economy and the largest market trade and was slightly ahead of Italy and just behind France. “China is third largest trading partner with the U.S and its trade surplus with the U.S. has increased to $201 billion around 2005 and by 2014 the total China-U.S. trade deals was 591 billion”. (Morrison, 2015) It had a global current account of $160 billion around 2005 (Hufbauer, Wong, & Sheth, 2006). As of 2015 “China is the U. S’s second largest trading company and the third largest export company and its biggest source of import”. (Morrison, 2015) Sales from a foreign affiliated U.S. firms in China totaled at 364 billion by 2013. (Morrison, 2015). What is also amazing is that China has the biggest U.S. treasury bonds and that keeps U.S interest rate low. Between 2010 to 2014 General Motor sold more cars in the Chine’s market than in the U.S. market and many U.S. firms participate in Chinese market to stay globally competitive. (Morrison, 2015). This kind of …show more content…

China is an economic power and the U.S. behaves with china because of security reason and China has the biggest U.S debt. If China decides to call it in it will have a huge impact in the U.S. economy and it will destroy its own economy as well. China is the second largest importer and exporter of the U.S. trade deals. The U.S sees china as a security concern because it has become very powerful and its economy is really big which can start investing in its military and increase threat and destabilize region and to U.S. allies such as Japan and South Korea. Furthermore, U.S sees china as a security because it has invested a lot in Africa because of its continental natural resources, and around 2007 the Congolese Government announced that China would bullied and refurbish rail ways, roads and mines in Congo at about $12 billion and china would benefit by mining copper ore and shows that it is dedicated to investing no matter how big the price tag would be in war torn countries. China has also invest in Nigeria by rebuilding its railroad system and is building a new railroad system. In Gabon it has paved almost 80 percent of its roads and Chinese firms are exploring for Oil and natural gas. The U.S and behaves negatively towards China as well because of currency manipulation and devaluing its currency to get and advantage in trade, as well as violations of Human Rights,

Open Document