Ever since when the normal trade was established between china and united state of America, in 1979 the world has witnessed a surge in Chinese economic power, at same time the US is facing the growing of trade deficit and jobs losses. Over the last quarter century, China has averaged 9.5 percent growth annually, more than its gross domestic product (GDP), and lifted over 400 million of its citizens out of poverty. This rapid rise was aided by the normal trade relations China established with the United States in 1979, and later by China's accession into the World Trade Organization (WTO) in 2001. But U.S-Chinese trade relations have always been somewhat uneasy; for many years. All this huge Chinese economic power, people think is due its unfair trade practices with rest of the world. China’s entry into the WTO was supposed to bring it into compliance with an enforceable, rules-based regime, which would require that it open its markets to imports from the United States and other nations. However, the core of the agreement failed to include any protections to maintain or improve labor or environmental standards. As a result, China’s entry into the WTO has further tilted the international economic playing field against domestic workers and firms, and in favor of multinational companies (MNCs) from the United States and other countries, This has increased the global “race to the bottom” in wages and environmental quality and caused the closing of thousands of U.S. factories, decimating employment in a wide range of communities, states, and entire regions of the United States. So many people around the world always wonder and had a big question that needs to be answered, that question is the trade relationship that exists between US and china. This paper will encompasses the general idea of trade relationship between these two countries and discuss in details the impact and political benefit that arise between them. Including how the Chinese export and currency become unfair practices, and how it affects the American economy by cursing a lot of tension and argument because US is suffering from trade deficit that lead to displaced several American jobs and so on. We will also get to see if china manipulating its currency is in their best interest or not and advantages and disadvantages that china faces when they trade with US, as we are going to see both of them gain from this relation for example: the Chinese are the large exporter to the US with a cheap goods that make that make Chinese currency stable and on the other hand this is keeping inflation lower in the US. All this trade tension and unfair practices are the reason why for so many years the US-Chinese relation is somehow strange and this at times opposed trade agreement between the two nations. Because contrary to the prediction china’s entry into the world trade organization (WTO) has failed to reduce its trade surplus with the united stated or increase the overall US employment. But it turns out not like that it gives a negative side. Statement of the problem;
“The growing Chinese export to the US cost millions of US jobs displaced with net job loss in every stated”. For many years this has been a key issue for many American leaders because the growing of unemployment. One economist (Robert E Scott may 2, 2007) said the rise in the U.S. trade deficit with China between 1997 and 2006 has displaced production that could have supported 2,166,000 U.S. jobs. Most of these jobs (1.8 million) have been lost since China entered the WTO in 2001. Between 1997 and 2001, growing trade deficits displaced an average of 101,000 jobs per year, or slightly more than the total employment in Manchester, New Hampshire. Since China entered the WTO in 2001, job losses increased to an average of 353,000 per year—more than the total employment in greater Akron, Ohio. Between 2001 and 2006, jobs were displaced in every state and the District of Columbia. Nearly...
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