Trade Relations Of The Us And China In The Last Four Decades

1083 words - 5 pages

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 States is unable to boost its exports which hampers its ability to increase jobs in return (Holliday).
According to THF, China on the other hand has not been left behind on this as it has experienced deficits of up to US Dollars 10 Billion and costing over 1 Million jobs to its natives, who are the minority workers.
A brief history of the trading between these two nations can assist the policy makers to come up with viable adjustments and developments which would be stipulated into policies to help curb the growing deficit thus in return creating more jobs and reviving the dwindling sectors as well (THF).
A brief Economic Trade history by the two nations forms the basis of understanding the major milestones. The first decade that is between 1970 to 1980 was a period that instigated institution building that saw the lift of certain barns and barriers of trade. These allowed the flow of technology, goods and people between the two nations. This was the period when the congress passed the trade agreement that conferred the contigent Most Favoured Nation (MFN) status on the Chinese Nation that is on 24th January 1980 (DoS). The figures rose from US Dolars 991.7 Million (1971) to US Dollars 2.3 Billion in 1979 (USSB).
The...

Find Another Essay On Trade Relations of the US and China in the Last Four Decades

US & China Export Relations - Economics 101 - Research Paper

599 words - 3 pages for this week. China, per “The Balance” an article written in June 2017, stated that China exported a total of $502 Billion dollars to the US. The US has a large trade deficit with China, and in 2008 it stood at $268 billion. We (US), spends $4.46 in China for $1 they spend in US goods. With the recent presidential changes and enemies that the United States has built. It’s clear to see that China is an ally not only for common grounds, but

US- China Trade Imbalance, Who to Blame for?

1452 words - 6 pages 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 economic growth when Japan was becoming

The Last Of Us

826 words - 4 pages ” is leagues ahead of its competition due, in part, to the meticulous attention paid to the smallest of details. The other part being the story itself, which Naughty Dog does exceptionally well. “The Last of Us” tells the tale of Joel and Ellie, and their journey to find a cure decades after a fungal infection has ushered humanity beyond a breaking point. Joel is an apathetic man; heavily tormented by grief over his daughter’s death

Trade in China and the Success of its Economy

5048 words - 20 pages Trade in China and the Success of its Economy China has come to the forefront of the international finance scene following the East Asian financial crisis for two reasons. First, the post reform Chinese economy closely resembles the other East Asian countries. China experienced significant levels of growth led by exports, with a rapid expansion in labor-intensive exports in its early stage of development. Rapid growth was accompanied by a

The Opium Trade and Imperialism in China

1612 words - 6 pages imperialism in China, through first making China go against her isolation policies in trade with the Western nations, and then directing China into wars that would lead to China's division into "spheres of influence" and the Open Door Policy.There was an obvious imbalance in trade between the Western Nations and China. Chinese products such as tea, silks, and porcelain pottery were strongly demanded in Europe, while the products manufactured in Europe

A Study of Life in Favela: Four Decades of Living on the Edge in Rio de Janeiro by Janice Perlman

887 words - 4 pages In Favela: Four Decades of Living on the Edge in Rio de Janeiro, Janice Perlman provides a substantial study of life in the 1,020 favelas in Rio de Janeiro. She attempts to relocate and reinterview her previous subjects. Perlman returned to the infamous slums of Rio de Janeiro to follow four generations over 40 years. She has interviewed almost 2,500 people including her subjects’ children and grandchildren. She blends detailed personal

The last four pages of Kafka's "Metamorphosis"

555 words - 2 pages DW WrightMrs. Fahey"The Last Four"The last four pages of Kafka's short story the "Metamorphosis" at a brief and sudden glance seem only to relate to the changes in the members of the family brought about due to the changes in Gregor. While the previous statement might be true too, if we dive deeper into the fabric of the story we can tell exactly how each and every member of the story after Gregor's death and has changed for better or worse. The

The Most Important Issues on Organisational Change in Literature in the Last Three Decades

1037 words - 5 pages contexts, situations and contingencies. For this reason the effective management of changes is fundamental for the survival and success of the organisation and different approaches and means of managing change are necessary for different types of change. This brief literature synthesis will first analyse the most important issues on organisational changes identified by the literature during the last three decades further to Armenakis (1999) and

Implications and Issues of the Australia-US Free Trade Agreement

3374 words - 13 pages almost all tariffs on manufactured goods, substantial reductions in tariffs on agricultural goods, removal of discrimination in government procurement, enhanced intellectual property protection and improved access for services. It will allow for substantial integration of the US and Australian economies and, according to the US Trade Representative, is 'the most significant cut in industrial tariffs ever achieved in a US free trade agreement

Civil War, The Ulmination Of Four Decades Of Intense Sectional Conflict Of Social And Political Difference Between The North And The South

2272 words - 10 pages The Civil War was the culmination of four decades of intense sectional conflictof social and political difference between the North and the South. Slavery played a big part in the cause of the civil war, north not believing in slavery and the south slavery was praised. Slaves was the largest single investment in the south, the labor in the south including nearly four million enslaved blacks. 'The Civil War stands not only as a steppingstone to

Media and Date Rape With the rise of feminism in the last few decades, there has been a newfound sexual freedom among both men and women. However, this freedom is costly, causing daterape

991 words - 4 pages Date Rape and the Media by Jennifer GreenWith the rise of feminism in the last few decades, there has been a newfound sexual freedom among both men and women. However, this freedom is costly, forcing those involved in any sexual relationship to have definite boundaries. On occasion, misread signals between two people can result in a situation known as date rape. Date rape, also referred to as acquaintance rape, can be defined as a situation

Similar Essays

Analysis Of The Us China Trade

1508 words - 6 pages , where some have charged that the US is destroying its industrial base to support a communist country's industrialization." http://worldnews.about.com/od/china/a/china_trade.htm What Causes the Trade Deficit? The current trade imbalance is caused in large part by intrinsic features of China's labor market and consumer base. The vast majority of China's 1.3 billion people still live in rural areas. China has, by some estimates, a surplus rural

China And Africa Trade Relations Essay

2263 words - 9 pages brief history between the two nations, discuss the impact of the Beijing Consensus, and analyze the advantages and disadvantages of exports and imports from each nation’s point of view. While relations with China are not in themselves a recent phenomenon, the extensive amount of trade that the two partake in is. Actually, the affiliation between China and Africa stretches back centuries. Some scholars try to establish the starting point based

Trade Wars Us, Eu And China

4844 words - 20 pages US are each other's main trading partners and account for the largest bilateral trade relationship in the world. They are also the largest players in global trade.The New Transatlantic AgendaThe New Transatlantic Agenda (NTA) with its accompanying EU-US Joint Action Plan of December 1995 as well as the Transatlantic Economic Partnership created in May 1998 forms the main structure of our bilateral relations. They are the foundations of EU-US

Us Japan Automobile Trade Relations Essay

1261 words - 5 pages clearly a violation of international trade law. Not only is this decision a resemblance of managed trade but a policy which will weaken the leadership position of the U.S. in the world economy as well.The U.S. needs to do what the Japanese did when they penetrated the American market; hard market research and heavy investment. The Japanese spent billions of dollars studying American taste and manufacturing models that suited them. The Big Three have