China-U.S Trade

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Wayne Morrison is an expert in Asian trade and banking (Morrison, 2017). He holds a Bachelor of Science in Accounting as well as a Master of Business Administration in Finance and Strategic Analysis. In his paper China-US Trade Issues, he emphasizes how the countries' trade ties have increased dramatically over the last thirty years (Morrison, 2017). He also investigates the perspectives of US business organizations on business involvement with China. Wayne also discusses the China-US trade and commerce relationship, which has become more difficult in recent years. According to Wayne, there are several options for resolving the two countries' trade disputes (Morrison, 2017). This piece presents the history and examination of China-U.S. trade links. Besides, it comprises the disputes, viewpoint, and trends of the countries.

Trade developments.

The author highlights how trade between the two countries has progressed in the recent years. He states that the China-U.S business ties grew swiftly after the countries renewed their diplomatic ties in 1979 (Morrison, 2017). A mutual business agreement was signed the same year, this yielded MFN, which stood for the mutual most favored nation starting 1980 (Morrison, 2017). At the same time, China's trade resolves commenced. On the other hand, in 2016 president Obama together with President Xi met to deliberate on the surplus quantity of steel, their collaboration on corruption and taxation, ways to enhance modernization and e-commerce. Importantly, their engagements through WTO is discussed in detail by the author. Notably, China pursued a resolution against the European Union and U.S regarding the view that China was a non-market recession. Their continuous engagements were aimed at improving their trade ties.

Investment ties

Wayne also discusses the China-U.S. businesses ties. To start with, he looks at the foreign direct Investment of the United States, which is the holding or oversight, indirectly or directly by a specific foreign dweller of 10% (Morrison, 2017). Information about inflows to the U.S and outflows from the Country is gathered and reported to FDI by The Bureau of Economic Analysis. It is carried out on equity payment guidelines. On the other hand, China monitors Investments by gathering of Foreign Exchange Reserves, FERs. The author highlights that surplus FERs has been a responsibility of FDI inflows (Morrison, 2017).

Trade issues

The author discusses the main trade issues between China and the United States. First, he explains China's state commercialism. The market indicators steer a momentous portion of the Chinese economy. On the contrary, the Chinese authority plays a crucial role in the economic decision-making. For instance, the administration upholds strategies that motivate households to withhold high level returns. The returns are kept in government-controlled banks which allow the state to provide financial assistance to Chinese enterprises at a low-cost. Consequently, this has led to limited market access for imported commodities. Also, the author discusses china's limits on ICT. The Chinese government has adopted legislation to restrict external access to Information and technology markets in the country. As a result, these restrictions have caused longstanding harm to United States who are trying to trade ICT merchandise into the Chinese market. Additionally, the author discusses the currency strategy by the Chinese government. He highlights that China fails to uphold a market-based floating exchange but somewhat fixes its plan precisely to the U.S dollar. The currency strategy has resulted in an acute rise in Chinese foreign exchange stockpiles. As such, it led to an acute increase in United States imports from the Chinese market.

External Source

Huo Jianguo in his article The Development of U.S-China Economic Relations, 1978 to the Present discusses the growth of trade between the United States and China since 1978. Also, he focuses on the benefits of the trade partnership and gives ways on how it can be enhanced further. The quick development of China is stated to be the most critical economic actions since the opening up and reforming in 1978 (Jianguo, 2012).

Development of China-U.S. trade relations

The United States played a crucial part in the rapid development of China. First, the United States was among the leading markets for Chinese commodities. Also, U.S trade partnership facilitated investments from States which brought direct financing to China. Additionally, the partnership brought technology and know-how management skills that fuelled the growth of the Chinese economy (Jianguo, 2012). Importantly, it exposed China to the global market thus enabling them to access it easily. Employment opportunities were created for China’s surplus workforce thus empowering them economically, this empowerment of the Chinese citizenry had an impact on the country’s economy.

Benefits of U.S.-China Trade

The United States gained from the fast development of China. To begin with, the increment in value-imports for money user commodities originating from China aided improve the standard of living of America's citizenry (Jianguo, 2012). The trade partnership kept inflation at a minimum level in the U.S. Further; China provides a vital international market for a majority of U.S commodities which has aided U.S business organization to harness substantial revenue. On the other hand, the trade has played a vital role in raising China's gross domestic product and broadening their export market.In addition, export of commodities to the United States has supported employment of the citizenry and contributed to industrial upgrade and modernization.

Promotion of bilateral trade

The author gives suggestions on how the bilateral trade between the countries can be enhanced. First, the writer suggests that the countries should come up with an information exchange and indicator mechanisms in places of counter-dialing and anti-dumping (Jianguo, 2012). Also, both governments should deliberate on resolutions that can prevent country involvements in plain tit for tat kind of behaviors (Jianguo, 2012). Most importantly, the countries should advocate for the trade of high technology commodities, and the United States should contemplate consolidating its export regulation procedures. The author acknowledges that implementation of these recommendations can go a long way in enhancing the business between the countries positively.

In my own opinion, the U.S-China trade partnership can be a foundation for developing countries to learn on how best to engage with each other when it comes to matters of trade. Also, the challenges experienced by the two countries make countries realize the importance of honesty when it comes to business partnership. For instance, common currency policy will ensure that firms and entrepreneurs have a harmonized policy with no fear of inflation due to prevailing global market conditions. Technology should be adopted across the world to promote e-commerce, especially in developing countries. As a result, it will reduce the cost of doing business and offer a boundless market for their good and services.


Jianguo, H. (2012). Chapter 1. The Development of U.S.-China Economic Relations, 1978 to the Present, 1-26.

Morrison, W. (2017). China-U.S. Trade Issues. Congressional Research Service.˂˃

May 02, 2023

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Industry Management

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