Essay On China Trade

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US-China share a significant relation in terms of trade which has expanded substantially over past three decades. This can be understood by the fact that total trade between U.S and china grew exponentially from $2 billion in 1979 to staggering $562 billion by year end of 2013. Currently China is United States second largest partner in terms of trading, its third-largest market for export, and its biggest import source. With a total estimate of approximately $300 billion China is one of the biggest market for U.S. firms (this fact is based on U.S. exports to China and sales by US firms which have significant investment in China). In fact for many companies it is important to participate in China’s market to stay relevant and competitive in current business scenario. For example automobile major General Motors (GM) has invested heavily in China, sold more cars in China as compared to United States for year range 2010-2013. Whereas on other hand, consumer in United States benefit greatly from the import of low-cost goods from Chinese manufacturer. Currently China is rated as the largest foreign holder of US Treasury securities (approximately $1.4 trillion as of December 2013). Another major aspect is that because of China’s purchases of US government debt has helped United States in keeping the prevailing interest rates low. Irony of this commercial tie between two countries is that despite of such important and huge bilateral commercial and economic relation this tie has been becoming complex and shadowed by tension because of several reasons. From U.S. perspective, many trade related issue appear because of a highly closed nature of the Chinese market. Although China has over a period of time has liberalized and opened up its econ... ... middle of paper ... ...irect impact on US economy as well. US-China Economy Policy US-China economy policy is critically dependent on the amount of import and export taking between the two countries. It is important to understand that the amount of imports and exports which takes between the countries is a major deciding factor in terms of future trade policies and overall straatgies. In 2013, merchandise exports from US to China was around $120 billion making China as third largest U.S export market after Canada and Mexico. Within span of 13 years (2000-2013), share of total exports going from US to China rose from 2.1% to 7.7% which is a significant rise. Items like oilseeds, grains,motor vehichle, aircrafts and parts were few of the most exported items from US to China. Also China in 2013 occupied position of second largest US agricultural export market estimated around $28 billion.

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