China-United States Trade Problems and Causes

Subject: Politics & Government
Pages: 2
Words: 476
Reading time:
2 min
Study level: Undergraduate


There has been a dramatic change in trade modalities between the US and China for the last 15 years. Before the advent of 1992 quantity trade volume between the two nations was estimated at $10 billion per year, but it grew by about 600% in 1999. This has in the past led to some questions being asked about China’s valuation procedures.

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US – China economic relations have escalated over the past several years’ china has risen to be the third largest US Trade ally. It has grown to occupy the 3rd slot partner in terms of its trade with US. Exporters enjoy the Chinese market due to the latter country’s population bounty. Thus notwithstanding commercial ties between the two nations, their relations have been stained by a number of problems. This research paper will look into the trade between the two nations and the problems which have cropped up, including their causes.

The paper will deal with the continued rise in the US china trade imbalance; implore each country’s trade practices, valuations problems of the bilateral trade will also be dealt with in the research paper for instance, China’s currency pegging. in the papers attempt to highlight trade issues between the two nations, it will examine China and the world trade organizations as well as violations of US Intellectual property rights and subsequent US restrictions on certain imports from china. The research paper will also tackle the problems that have arisen out of economic interests as opposed to fundamental interests, and how these problems can be settled. How have these problems impacted on the mainstream economic and trade relations between the two nations?

Statement problem

Despite the fact that China offers ready market to US imports due to the large population found in China, there has been a significantly growing trade deficit between the two countries. This has not been addressed fully. Never the less there has been a surge in US imports of Chinese commodities relative to US exports to China.

Goals/ Aims of the research

My objectives of the research are two fold. I intend to examine how the trade between China and the US has affected the two nations and how effective has it been. Secondly, I intent to find out how economic reforms can help improve future economic ties between the two countries.

Other trade analyses have highlighted that China can be significantly US’s major market for its products. Others have argued that economic growth has greatly improved the purchasing power of the Chinese citizens.

Significance of the study

My research on trade between China and US is innovative since it can be used in formulation of future trade policies between the two nations. I also believe that this research can be of great importance to a member resident wishing to do trade with either partner country (China or US).

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